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GEORGE CAMPBELL 



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PROGRESSIVE 
GOVERNMENT 

REDUCED TO 

QUESTIONS and ANSWERS 




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Dedicated to the 

THINKING MEN and WOMEN 

OF AMERICA 



Copyright 1911 

By GEORGE CAMPBELL 

Coffeyville, Kansas 



PUBLISHED BY 
FANCHER PRINTING CO. 



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WHY ARE THERE SO MANY SUICIDES IN 
AMERICA, ESPECIALLY AMONG THE YOUNG 
MEN AND YOUNG WOMEN, AGGREGATING IN 
THE LAST YEAR FIVE THOUSAND EIGHT HUN- 
DRED FORTY PERSONS, AS COMPILED FROM 
THE STATISTICS? 



There are several causes that contribute to this 
self destruction of human life, but perhaps the one 
overshadowing cause is poverty. In America, the indi- 
vidual that takes his or her life, as a rule is educated. 
He sees other people enjoying the comforts of life, 
which education and refinement makes necessary to 
his very existence, and he cannot procure them, and 
there seems to be no future prospect of bettering his 
condition or being able to establish a home with com- 
fortable surroundings; the past to him is an unpleas- 
ant memory, and the future gives him no hope of 
reward; he becomes discouraged and disheartened 
and comes to the conclusion that life is not worth the 
living, and ends his existence by taking his own life. 

With the general diffusion of knowledge among the 
people, as is the case in the United States, there comes 
a higher standard of living and additional wants are 
created that must be supplied, in order to secure happi- 
ness and contentment to the people; and changes are 
necessary in government to meet these conditions, and 
the adjustments of our government to these changes 
made necessary by our advancing civilization, calls for 
a high standard of statesmanship on the part of the 
lawmakers and law enforcers of our land. 

Man in a savage state, has but few wants and these 
are easily supplied and he is contented; but as he be- 
comes more civilized and enlightened, his wants are 
multiplied many fold ; and if his environments are such 
that he cannot supply them, he becomes morose, dis- 
couraged and disheartened, for he deems himself en- 



PROGRESSIVE GOVERNMENT 



titled to enjoy these additional comforts, which he sees 
others enjoy no more worthy than himself, and if he 
is deprived of them, he sinks gradually into despond- 
ency and gloom without hope for the future, and his 
career often terminates in suicide or crime, as a relief 
from his troubles. He feels that all the avenues to a 
higher life have been closed against him, and that his 
struggles to better his condition are unavailing, and 
that he is an outcast from society without hope, home 
or friends; a stranger as it were, in the land of his 
birth; and such are the fruits of poverty to an edu- 
cated person. 



WHY CANNOT THE INDUSTRIOUS YOUNG 
MAN OR YOUNG WOMAN SECURE THESE ADDI- 
TIONAL COMFORTS OF LIFE, INCIDENT TO AN 
ADVANCING CIVILIZATION, WITH A REASON- 
ABLE AMOUNT OF EFFORT ON HIS OR HER 
PART; FOR AS A MATTER OF FACT, DOES NOT 
THE WEALTH OF A COUNTRY KEEP PACE 
WITH THE ADVANCING CIVILIZATION, AND 
ENLIGHTENMENT OF THE PEOPLE? 



It is true, the wealth of a nation generally keeps 
pace with the progress of the people," and if conditions 
were right and equitable, these additional wants of the 
people, made necessary by an advancing civilization, 
could easily be supplied; but unfortunately, for the 
people, while great progress has been made upon all 
industrial lines and new scientific principles and meth- 
ods have been devised and applied to all industrial pur- 
suits to a degree, that has revolutionized the business 
of the world in the last quarter of a century, yet, very 
little or no progress has been made in the science of 
government, the most important of all sciences to the 
general public, and we have in the main, the same 



BY OIvORGE CAMPBELL 



governmental policies and methods now, that prevailed 
in Rome, more than two thousand years ago; and as 
these methods and policies of government destroyed 
the Roman empire in all her splendor, and brought on 
the night of the dark age, so the present American 
methods and policies, if persisted in, will bring a blight 
to our civilization, which will be followed by another 
night of a dark age, just as true as "Like causes bring 
like effects." 

The original idea of the functions of government, 
was that of merely police duty, and there was at first, 
only a criminal code, under which the officers of the 
law, were to preserve peace and order among the peo- 
ple and prevent one individual from disturbing the 
peace of another; and, if one individual in violation 
of this code, killed, wounded, assaulted or beat another, 
except in self-defense, he was severely punished or put 
to death, according to the heinousness of the crime. 

At this early period in the evolution of government, 
there were no property rights to adjust between indi- 
viduals, as all property was held in common; but it 
was found to be to the best interests of society, to 
recognize the property right of the individual, to the 
extent of what he produced, and this was finally done, 
and the recognition of this right, gave a great stimu- 
lus to individual exertion, and the law had to be ex- 
tended in a manner to protect these newly acquired 
property rights ; and a civil code of laws were formu- 
lated and adopted, that enabled the individuals to ad- 
judicate their disputes over property interests, by a 
properly organized court ; and with this change in the 
jurisprudence of the country, in the adoption of both 
a criminal and civil code, the procedure has come down 
to us through the centuries with but few changes, and 
little study has been given to fundamental law since 
this formative period, with a view to improving the 
science of government, so as to meet the wants of th% 



PROGRESSIVE GOVERNMENT 



people, made necessary by changing conditions, in the 
business affairs of the world; and while the govern- 
ment of the United States is more progressive than 
many of the European governments, it is wholly inade- 
quate to meet present conditions, in the onward pro- 
gress of the people; and the policies and methods as 
they now exist, operate in a large degree against the 
masses of the people, and millionaires by the exercise 
of special privileges to tax the people, are multiplying 
at a rate never before known in the history of the 
world; and the small independent dealers of the past, 
are daily becoming fewer, as they are driven out of 
business by the powers of the trusts, and are forced 
to become employes of corporations, 'and work for a 
salary; and the natural man is thus rapidly becoming 
the servant of the artificial person, created by law, and 
known as a "corporation." Is it a wonder, that suicides 
and divorces multiply in a land where these conditions 
exists? 

The wage system in some respects, is worse than 
was chattel slavery prior to the war of the Rebellion. 
I have a distinct recollection that the slave owner took 
a certain pride in the number and quality of his slaves ; 
and as a rule, he wanted them well fed and well cared 
for; and if one became sick, the best medical services 
were ordered, for the money value of the slave was of 
interest to the owner, if nothing else, and he did not 
want them to die or remain sick if it were possible to 
avoid it ; and besides, there was as a rule, a sympathetic 
feeling between master and slave, that insured to the 
slave, kind treatment, which disappeared under the 
wage system. 

Under present conditions, in the congested factory 
centers, the white and the colored employes, work 
under overseers the same as did the colored slave prior 
to the war of the Rebellion, and each works for a wage, 
not sufficient in many instances, to sustain the worker 



BY GEORGE CAMPBELL 



in a manner suited to American citizenship; and in 
case the worker becomes sick and cannot work, his em- 
ployer fills his place with some other person, and the 
incident of the sickness of the wage earner is dismissed 
from the mind of his employer, as he has no interest 
in him, further than his labor; and the unfortunate 
worker in many instances, is not able to provide the 
necessary medicine and medical service, and is often 
neglected, and sometimes dies from mere neglect ; but 
his late employer is not concerned, as there is no money 
interests involved, and he does not care, for wage ser- 
vants are numerous, and are becoming more plentiful 
day by day, as the great middle class of the people fail 
in business, and take their places among the wage 
servants, and work for a corporation, for the wages 
necessary to sustain life and maintain a home, if he 
is fortunate enough to possess one. 



BUT, DO NOT THE YOUNG MEN AND WOMEN 
OF AMERICA, GET BETTER WAGES NOW THAN 
EVER BEFORE KNOWN IN THE HISTORY OF 
THE WORLD? 



Possibly so, but this does not appear from the evi- 
dence taken in the strike of the girls of New York 
City, in the shirtwaist factory. The strike was inaugur- 
ated by reason of low wages, and unsanitary and dan- 
gerous conditions prevailing in the factory; and that 
the strike was justifiable is proven by the fact, that 
the factory was recently destroyed by fire, and about 
125 of the girls perished in the flames. 

I have before me, a statement of one of the factory 
girls, seventeen years old, as to how she lived. She 
paid for lodging, six cents per night, in a dormitory of 
a charitably supported home for girls; she ate no 



PROGRKSSIYK GOVKRXMKNT 



breakfast, could not afford it, and her lunch at noon 
consisted of coffee and rolls, for which she paid ten 
cents, and for dinner, she had coffee and rolls, and 
paid ten cents, and her laundry cost her twenty-one 
cents per week, aggregating the total expenses per 
week of $2.03; and % her weekly earnings averaged 
$2. 62 1/* leaving only 59 V2 cents per week, with which 
to clothe herself, pay street car fare, and purchase the 
necessary medicine in case of sickness. How could she 
do it? Will not such destitution lead to suicide and 
crime? 

Through the influence and assistance of Miss Bel- 
nap, Mrs. Gould, Vanderbilt and others, these girls won 
their strike, and much credit is due these women, and 
it proves that wealthy people are often kindhearted, 
and will assist the poor in a righteous cause, with their 
means and influence, that justice may be done. 

But whether labor is being well paid or otherwise, 
is not our purpose to discuss here, for that is not the 
question. We are confronted with the fact, that our 
people are fast becoming a nation of wage earners, de- 
pendent upon corporations for wages as the only means 
of support, and for the maintenance of a home, if 
they are fortunate enough to have one ; and the great 
middle class of our citizens are disappearing and the 
young men and women are being crowded into tene- 
ment houses, in congested industrial centers, surround- 
ed by the most squalid poverty, with the door of hope 
apparently barred against them, and the system is thus 
crushing out that strong, independent American man- 
hood and womanhood, the hope of the nation, and on 
which its perpetuity must depend ; and as the struggle 
for existence continues and becomes more intense, man- 
hood and womanhood will sink lower in like ratio, and 
it is time for the American people to arise and do their 
duty by changing conditions, so as to preserve the 
young men and women of America from further de- 
terioration. 



BY GEORGE CAMPBELL 



"Princes and lords may perish and may fade, 
A breath can make them as a breath hath made ; 
But a bold peasantry, a country's pride, 
When once destroyed, can never be supplied." 
"Ill fares the land, to hastening ills a prey, 
Where wealth accumulates, and men decay." 

That the wealth is accumulating in the hands of the 
few, at a rate never before known in all history, and 
that the high type of American manhood and woman- 
hood, is decaying in a like ratio, no one will question. 
The buying of the votes in Adams county, Ohio, where 
the records in the investigation show, that a majority 
of the voters of the county, sold their votes for money ; 
and in some precincts, nearly all the voters had thus 
sold their votes to politicians, so there were hardly men 
enough left, that were not disfranchised to fill the 
offices; and in the investigation of the election of 
Senator Lorimer of Illinois, it was proven, that sena- 
tors and members of the lower house of the 
Illinois legislature, were purchased for money, to 
vote for Lorimer for the United States Senate, and all 
these circumstances prove too clearly, the decline of 
American manhood ; and these are but samples, show- 
ing the decay of American manhood, as wealth accumu- 
lates in the hands of the few and is used to corrupt the 
voters, and thereby undermine the very foundation of 
civil government. 

The history of Adams county, Ohio, and the pur- 
chase of votes of the house and senate, in the interest 
of corporation measures, is to a greater or less degree, 
the history of many other counties, and many other 
commonwealths throughout the length and breadth of 
the nation, and the history of the Lorimer election to 
the United States senate is the history of the election 
of many other senators to that same body, and under 
such conditions it is but natural, that the senate of the 
United States should attempt to whitewash the election 



10 PROGRESSIVE GOVERNMENT 

of Senator Lorimer, and should welcome him to a seat 
in that body. 

The Adams county disgrace, in the exercise of the 
elective franchise, and the Lorimer purchase of votes, 
in the Senate and House of the Illinois Legislature, 
would never have been known to the general public, 
had not the participants fallen out among themselves 
in the division of the spoil; but let us hope these de- 
velopments will not stop here, but that all those who 
are guilty of similar corruptions, in the elective fran- 
chise, will fall out, or, that they may have the man- 
hood to come forward and expose these crimes, in the 
interest of good government, for the corruption of the 
ballot in the hands of the common voter, or in the 
hands of the Legislators of the state or nation, is a 
blow at liberty itself, and if persisted in and not 
checked, must result in the overthrow of this republic. 



BUT HOW CAN THIS CORRUPTION OF THE 
BALLOT, AS MANIFESTED IN THE ADAMS 
COUNTY, OHIO, CASE, AND IN THE LORIMER 
ELECTION TO THE UNITED STATES SENATE, 
AND THE BRIBERY OF THE HOUSE AND SEN- 
ATE OF THE OHIO LEGISLATURE, IN THE 
SUPPORT OF CORPORATION MEASURES, BE 
CHECKED? 



I will admit this is a difficult proposition, yet, I 
think it can be accomplished, but it may require time. 
As conducive to this end, I would favor a compulsory 
educational law, for the education of the children, 
similar to the Kansas Statute, and make it apply to 



BY GEORGE CAMPBELL 11 

every state in the Union. If a parent neglects the edu- 
cation of his child, the state should have sufficient in- 
terest in the child to see that it is properly educated, 
that it may have an equal chance to make its way in 
the world, so far as education is concerned with the 
other children, born under more favorable circum- 
stances. 

If the parent is too poor to feed, clothe and furnish 
books for his children, the state should do it; as is 
the case in Kansas, and if compulsory education is es- 
tablished, throughout the nation, the coming genera- 
tion will be better educated and will cast a more intel- 
ligent ballot, and we hope a more honest one, and the 
text-books used in our schools, ought to be changed so 
as to impress the youth, with the power and sacredness 
of the ballot, and how it should be used, and the care 
that should be exercised in casting it aright; and all 
officers, so far as practicable, ought to be elective even 
the United States senators and judges of the federal 
courts ; and there should be a provision of law, for the 
recall of all officers that are derelict in duty, and the 
initiative and referendum should be embodied in form 
of law, for the protection of the people, as was the case 
in Rome, prior to the time of Caesar. 

If we concede that by reason of the lack of intelli- 
gence on the part of the voter, or by reason of his dis- 
honesty, a large number of voters can be purchased, 
and that this is an objection to a further increase in the 
elective franchise, we will have to also admit that it is 
a more difficult matter, and will require more money 
to purchase the mass of the voters in an election, than 
to purchase the necessary members of the Legislature 
or, the power that appoints judges, where such pur- 
chase is possible, and all the arguments are therefore 
in favor of enlarging the elective franchise to include 
these officials. 

There is no good reason for exempting the Federal 



12 PROGRESSIVE GOVERNMENT 

Judges from being elected by the people, nor from the 
recall measure ; for there is no other branch of govern- 
ment so imperious and dominating as is the Judiciary. 
Some of these judges will not allow their decisions to 
be criticised, under the penalty of being imprisoned for 
contempt of court, and will not allow the accused per- 
son a trial by jury. Surely judges should be elective 
and subject to recall. 

When we consider the importance of the elective 
franchise, it would seem, that only those should vote, 
who possess the necessary educational qualifications; 
for a ballot should be intelligently cast, for certain poli- 
cies, that in the judgment of the voter, are for the best 
interests of the people, and a person who can neither 
read nor write, or understand the policies of the party 
with which he is affiliated, is at a great disadvantage, 
as he cannot comprehend the importance and sacred- 
ness of the ballot, and it might be well to consider 
whether or not, an aducational qualification should 
be imposed. 

There is no excuse, however, for an American being 
unable to read and write, and I speak advisily upon 
this proposition, for the writer of this pamphlet, 
learned to read and write, after he was fourteen years 
old, and worked in a sawmill in the day time and 
studied four hours each night, under an instructor, 
that he paid from his own earnings, and if he can do 
this, others can. 

As contributing to the use of an intelligent ballot, 
I would enfranchise women to the same extent as men. 
As a rule, the women are more conscientious and hon- 
est than men ; and the statistics show that men put in 
responsible positions, about one out of every one hun- 
dred thirty-five go wrong; while women placed in re- 
sponsible position, only one out of every 1,050 go wrong 
and why not let them vote ; for we need their honesty 
and high character in our elections ; and in the western 



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14 PROGRESSIVE GOVERNMENT 

by which a person could get title to a home, under the 
Desert Land act, or Timber Claim act ; but most of the 
available land suitable for homestead, is now 
taken, or given by the government to corporations, to 
aid in the construction of railways, etc., and at present, 
while the people have these homestead laws, the cor- 
porations have in the main, all the available land. 

The several railway companies, that constructed 
railways from the Missouri river to the Pacific coast, 
each received a right-of-way 400 feet wide, free of 
cost ; and in addition thereto, large donations of land, 
equalling 12,800 acres for every mile of railway con- 
constructed. These grants, extended twenty miles on 
each side of the railways and included every alternate 
section ; and the railway companies were given the 
privilege where the lands had been taken, and were 
owned by others, or, where the grants overlapped, to go 
outside and locate indemnity land, to the amount of 
their original grants from the government. 

When these western lands were ceded to the United 
States, by France and Mexico, there was a provision in 
the cession, that the government should recognize the 
grants that had been made by Spain, Mexico and 
France, to individuals and corporations ; and as a re- 
sult, these railways were constructed through many of 
these tracts of land, held under these foreign grants to 
individuals and corporations; and the railway com- 
panies were thus permitted to go outside and take 
indemnity lands, that would equal the 12,800 acres to 
the mile ; and in locating these lands, they selected the 
valuable coal lands of the United States, worth hun- 
dreds of millions of dollars; and the title to these 
indemnity lands, selected by these railway companies, 
was approved by the Secretary of the Interior, and thus 
the title to a vast acreage of coal lands, which should 
have been kept for the people, passed to the railway 
companies, and it is estimated that by reason of these 



BY GEORGE CAMPBELL 15 

coal and other lands, donated by the government to 
these railway corporations, that these companies re- 
ceived $90,000 for every mile of railway constructed; 
and the tract of land given to these railway companies 
as shown by the official figures, would amount in area, 
to more than nine such states as the state of Ohio. 

But the donations did not stop here, for in July, 
1862, Congress enacted a law, granting to each of 
these railway companies, a subsidy, consisting of six 
per cent, currency bonds, and apportioned as follows : 
For every mile of railway constructed between the Mis- 
souri river and the foot hills of the Rocky mountains, 
the railway companies were each to receive and did 
receive, $16,000, and through the Rocky mountains for 
a distance of 150 miles, the railway companies received 
$48,000 per mile; and from the Rocky mountains to 
the Sierra Nevada mountains the government paid 
$32,000 to the mile, and through the Sierra Nevada 
mountains, $48,000 to the mile, and for the construc- 
tion of the California branches, $32,000 to the mile, 
and on these bonds, the government paid the interest 
as it became due and payable, and relieved the railway 
companies from this burden, and the government paid 
on these bonds in interest, more than $300,000,000, and 
never received upon this vast sum, one cent of interest 
from the railway companies. 

These bonds have been in a measure, compromised, 
and payment made in transportation and otherwise 
by the railways to the government, but no interest was 
ever paid the government, on the vast sums of money 
advanced in payment of the interest upon the bonds. 
If we take the value of all the lands donated to the 
railway companies of the United States, and the value 
of the coal lands located by them as indemnity lands, 
and the money advanced as interest by the government, 
and all private and municipal donations, we have a 
total subsidy granted to railway corporations, equalling 
more than four billion dollars. 



16 PROGRESSIVE GOVERNMENT 

Leland Stanford of California, it is said, admitted 
that his net portion of these donations by the govern- 
ment to the railway companies, with which he was con- 
nected, amounted to more than $35,000,000, and he was 
at that time, United States Senator from California, 
and this would indicate that the policy of Congress, in 
giving away the people's property to corporations, in 
which Congressmen and Senators hold an interest, has 
been in practice for a long time, and still prevails to 
a greater or less extent among Senators and Members 
of the House, as proven by the fact, that Hines, the 
millionaire lumberman, it is said, raised $100,000 to 
assist in the election of Lorimer to the United States 
Senate. 

Leland Stanford, endowed a university in Califor- 
nia, with a part of his money, and is entitled to some 
credit for this, but we have not been informed, that his 
associates put any portion of their ill gotten gains to 
so good a use. 

These railway companies, in addition to these gov- 
ernment grants of land and bonds, induced counties 
and cities, through which their lines of road extended, 
to vote bonds and take stock in these enterprises, and 
these companies laid out towns along their lines of rail- 
way and sold lots and vast sums of money were realized 
in this manner; and many ranchers were induced to 
invest large sums of money in these roads as they felt 
an interest in their construction, and it has been esti- 
mated by competent persons and published in the press, 
and the statement has not been denied by the com- 
panies, that the amount received from all sources, would 
build and equip these roads three times over. 



BY GEORGE CAMPBELL 17 

DID NOT THE RAILWAY COMPANIES, SELL 
THESE VAST TRACTS OF LAND, DONATED BY 
THE GOVERNMENT, TO INDIVIDUALS FOR 
HOMES; AND DID NOT THESE ROADS PROVE 
OF SERVICE, IN INDUCING THE PEOPLE TO 
SETTLE UPON THEM? 



This was an argument, used at the time of the do- 
nations, to justify the grants; but the railway com- 
panies, instead of selling these lands, in small tracts to 
homeseekers, sold them in large tracts for stock ranch- 
es, and the settlers were not permitted to locate on even 
government land, within these grants; and other set- 
tlers who had located upon these government lands, 
within these grants, prior to the building of the rail- 
ways, were driven from their homes, and many of them 
were shot, and the Mussel Slough massacre, growing 
out of the dispute over the title to these lands, is yet 
fresh in the minds of the people. 

When these grants were made by the government, 
to the several railway companies, every alternate sec- 
tion for twenty miles on each side of the roads, were 
retained by the government; therefore, the company 
owned every alternate section in a forty mile strip- 
extending from the Missouri river to the Pacific coast, 
on each line of railway, and it was argued, that these 
sections retained by the government, within these 
grants, should be sold at double minimum price; that 
is, $2.50 per acre instead of the minimum price of $1.25 
per acre; and it was said, that the government in 
charging this price, would collect a sufficient sum from 
the people, who settled upon these government lands 
for homesteads to reimburse the government for the 



18 PROGRESSIVE GOVERNMENT 

amount donated in land, to the railway companies ; and 
it was further argued, that while this would double the 
burden of the home-seekers, in compelling them to pay 
a double minimum price for these lands, that the build- 
ing of roads, would benefit the settler, in a sum, to 
more than equal the advanced price ; but when the set- 
tlers undertook to locate upon these government lands, 
included within these grants, at even this advanced 
price, they were not permitted to do so ; and as before 
stated, those that had, prior to the building of the roads, 
settled upon government land, withnn these grants, 
were driven from their homes by armed men, and in 
many cases, the settlers were slain, and our govern- 
ment allowed these atrocities to continue, after they 
were brought to its notice, for high 'officials, seem to 
have been interested, and these stock ranches were 
fenced, and the government land included with the 
railway land, and settlers were not permitted to enter 
these enclosures, and if they did, they were shot, as an 
example to others. These facts are contained in gov- 
ernment reports and are blots upon the fair name of 
our nation ; but fortunately, our government is now 
undergoing a change in sentiment, and policies toward 
the people, and a higher type of statesmanship is de- 
veloping in both houses of Congress, and better men 
are being appointed to the heads of the various depart- 
ments of government, and a progressive sentiment is 
being created in both branches of Congress, that indi- 
cates that the welfare of the natural man is to be taken 
into consideration, in future legislation, at least, to the 
same extent as is the interest of the corporation. 



WHY SHOULD THE YOUNG MAN OR WOMAN 
ESTABLISH A HOME, AND WHY SHOULD THE 
GOVERNMENT ASSIST IN SO DOING? 



The establishment and maintenance of a home, 



BY GEORGK CAMPBELL 19 

should be and doubtless is, the hope of every intelligent 
young man and woman ; for the home is the anchor of 
good society, and the basis on which all stable govern- 
ment must forever rest; and hence, the hope of the 
nation centers in the home ; and our government should 
devise ways and means by which a comforable home 
can be established, maintained and owned by every de- 
serving citizen; but under the present wage system, 
such is often impossible, and many of our brightest 
young men and women, capable of maintaining exem- 
plary homes, if conditions were favorable, fear to at- 
tempt to establish them, knowing they are wholly de- 
pendent upon wages, received from corporations, to 
maintain themselves and a home, if one should be es- 
tablished, and in case of discharge, by reason of de- 
pression in business, or some other cause, and the ina- 
bility of the individual to secure employment elsewhere, 
the basis of the home is shattered, and the structure 
falls; and many times, there are helpless children to 
be cared for at public expense, and the contemplation 
of these conditions that may arise, discourages the mar- 
riage relation, and operates against the establishment 
of the home. 

In dealing with the question of home, we will have 
to take into consideration, the two great classes of our 
people, the farmers and the small business men, who 
represent the great middle class ; and the wage earn- 
ers, who represent the dependent class, of our citizens. 

It is a well established fact that the young men and 
women of the country, are now drifting to the towns, 
in great numbers; and becoming wage earners; and 
an investigation shows, it is not because rural life is 
unattractive and undesirable, but the young men and 
women reaching their majority, are not able to pur- 
chase farms, or establish themselves in business, and 
the young man is not able to buy teams and machinery 
necessary for renting farms, and must work for the 
farmer for wages, or go to town and take employment. 



20 PROGRESSIVE C.OVKRXMENT 

On inquiry, he finds there are shorter hours of 
labor in the city and better wages, than on the farm; 
and of the two alternatives, he chooses the wage ser- 
vice in the city, and join the great army of wage earn- 
ers, which is being constantly augmented from these 
sources. 

Now, if the governemnt would fix conditions so it 
would be possible, for young men and young women 
to marry and establish homes of their own in the rural 
districts, and make it possible for them to own homes, 
they would not drift to cities in such vast numbers, 
and we would retain the great middle class of our citi- 
zens, which are so necessary to the stability of the 
government itself. 

According to the census, our government could, for 
less than one-half what has been given to corporations, 
purchase a home of eighty acres for each adult man, 
residing in the rural district and not owning a home. 
Of course, the young man in order to avail himself of 
the law, framed according to these suggestions, would 
have to marry, and the title to the homestead, should 
vest equally in the man and woman, who thus estab- 
lishes the home. 



HOW COULD THE GOVERNMENT GET THE 
LAND, TO SUPPLY THESE PEOPLE WITH 
HOMES, INASMUCH AS THE LAND IS NOW 
OWNED LARGELY BY INDIVIDUALS AND COR- 
PORATIONS? 



Where the land could not be purchased, at a rea- 
sonable price, the government could acquire title by 
the exercise of the right of eminent domain, a power, 



BY GEORGE CAMPBELL 21 

which inheres in all governments, and it could be exer- 
cised in such a manner, as to injure none. The gov- 
ernment takes the census every ten years ; and suppose 
the census of 1910 is taken, and we find that if we take 
from the rural population, the men who ought to main- 
tain homes, and divide the lands equally among them, 
there would be eighty acres for each adult male, that 
should maintain a home. 

We will now suppose, that Jones has 160 acres of 
land, and thus has double the portion to which he is 
entitled; and we will further suppose, that Doe is a 
young man, just married and wants a home for himself 
and family. Doe applies to the Clerk of the District 
Court, for a commission of three appraisers, to ascer- 
tain the value of the eighty acres of surplus land, that 
is owned by Jones, and the Clerk appoints the com- 
mission, and the commissioners enter upon the Jones 
farm, and state to Jones that under the law, he is en- 
titled to but eighty acres, and that at that time, he is 
exercising ownership over 160 acres, or twice the 
amount he is entitlede to own under the late census, 
and that his surplus land is desired for a homestead by 
another person and will have to be taken. Jones is 
required to take his choice of the eighty acre tracts, 
and after doing so, the appraisers ascertain the value 
of the remaining eighty, and sets the same over to Doe 
and his wife, and the value of the land as ascertained 
by the appraisers is paid by the government into court, 
for the benefit of Jones, who thus receives the full 
value of his land, and Doe is provided with a home, 
and no one is injured. If Jones is not satisfied, with 
the awards of the commissioners, he can appeal to the 
District Court, and obtain judgment for whatever the 
land is worth, and no wrong is committed. 

After the title to the homestead is thus perfected, 
the government should advance a sufficient amount of 
money, to build the house and make other improve- 



22 PROGRESSIVE GOVERNMENT 

merits necessary to make home comfortable; and the 
homestead thus acquired, should not be encumbered by 
mortgage or other lien, except the government lien, for 
the purchase price of the property, and this should be 
paid back to the government in installments, equalling 
a small rental value for the property each year, and 
there should be no interest charged ; or, if the govern- 
ment saw fit, and wanted to be as generous to the 
natural man as it has been to corporations, it could 
make the homeless a donation outright, of his home 
as it did when there were government lands to home- 
stead, and the home thus acquired, should be for the 
family and should descend to the children or legal heirs ; 
and a provision of this nature, and that the title to all 
lands must rest upon use and occupancy, would not only 
keep the rural people from drifting to the cities, but 
would cause many from the city to go to the country, 
and would eventually result, in dividing the land into 
smaller tracts, which would be of great benefit to the 
country at large, for many of the farms are too large, 
and by reason of this, are not properly cultivated ; but 
under the plans here suggested, the land would be 
better tilled, and the aggregate production largely in- 
creased. 

The census of course, is taken every ten years, and 
under the system here suggested, the size of the farms 
would be adjusted to the census every ten years, and 
would be gradually diminished in acreage; and by 
the adoption of this system, we would preserve the 
great middle class of our people, and thereby insure 
the future stability of the government and the home. 

This policy was pursued in Rome, until the Roman 
farm was reduced to seven acres, and the greatest pros- 
perity prevailed during the entire time this law was 
in force. During this period, Rome conquered the 
world, for every Roman was a land owner and was 
independent, and the system developed a strong in- 



BY GEORGE CAMPBELL 23 

dividual manhood without a parallel in history; but 
when this law was repealed and the lands aggregated 
in large tracts, and the masses of the people became 
employes of the rich, and later, slaves to the aristoc- 
racy, the Roman spirit died, the Empire crumbled into 
decay, and the light of her civilization went out in the 
night of a dark age that overshadowed the world. 

When we take into consideration the amount that 
has been given by the government to corporations, it 
does look as though it was about time to make the 
natural person some donation, or at least some recog- 
nition of his natural rights to live upon the earth, 
without paying some person or corporation for the 
privilege, and if the provisions outlined herein, with 
reference to the homestead were carried out, this 
would only cost the government if these homes were 
given to the people, a sum equal to about one-half what 
has been given by the government to corporations, and 
it would seem that the natural person ought to receive 
as much consideration at the hands of the government, 
as the corporation, and the recognition of the natural 
person, as entitled to a home, at the hands of his gov- 
ernment is a policy that has been tried in the United 
States a generation ago, and worked well, and the 
older people can remember that period, and the song 
was on everybody's lips; 

"Come along, haste along, make no delay, 

Come from every nation, come from every way; 

Our land is broad enough, don't be alarmed, 

For Uncle Sam is rich enough, to buy us all a farm." 

Our government made the Louisiana and several 
other purchases of large tracts of land, and offered 
inducements to people to come and settle and make 
homes upon these lands, and they came not by the hun- 
dreds, but by the millions, and helped to create the 
United States, a nation without a parallel in the 
world's history. 



24 PROGRESSIVE GOVERNMENT 

The government now has some lands in the western 
states that would make desirable homes, but those that 
need them are not financially able to settle upon these 
lands, and they should be assisted by the government 
in so doing. 

There are also desirable lands for homes in Alaska 
and are as fertile and as good as those of Canada on 
the east of these possessions, yet Canada is offering 
inducements to Americans to settle Canadian lands, 
and our people are going at a rapid rate, 40,000 within 
the last year, while few, if any Americans are settling 
in Alaska, with a view to establishing permanent 
homes. 

Our government should assist the people to settle 
these lands, give them free transportation to their new 
homes, and loan them a sufficient amount of money 
without interest, to improve these lands, procure 
farm implement and machinery. The government 
has loaned to the railway companies, without 
interest, and why not to natural persons that 
want to build homes, and the government should 
also build railways to give them a market for 
their products, and with such a policy, these desert 
lands of the West and the Alaskan wilds will soon 
blossom into prosperous and contented communities, 
that will greatly add to the wealth of the nation, and 
all the people will be benefited ; a similar policy is now 
in effect in New Zealand, Australia and several other 
portions of the globe and has always inured to the 
benefit of the government and the entire people, and 
should receive careful consideration before being 
rejected. 



BY GEORGE CAMPBELL 25 



WE CAN SEE HOW THE RURAL PEOPLE 
CAN OBTAIN HOMES UNDER THE POLICY 
HERE OUTLINED, BUT HOW CAN THE WAGE 
EARNERS OF THE CITY OBTAIN HOMES, WITH- 
OUT GOING TO THE COUNTRY? 



There is a large amount of land consisting of lots in 
every city, that is held for speculation, that would be 
desirable for resident purposes, and located around the 
cities, is plenty of land that could be divided into one 
and two-acre tracts, which would make desirable homes 
for the people of the city, and the title to these prop- 
erties could be acquired through the exercise of emi- 
nent domain as outlined for the rural districts, and 
these lands should be paid for by the government, and 
money advanced to erect the necessary buildings and 
improvements, on the same terms and conditions as 
those that prevail in the rural district, but the wage 
earner being dependent upon his wages to sustain the 
home, the local city government owes the duty to the 
laborer of furnishing him employment, when he can- 
not procure it elsewhere, that his ability to provide 
himself and his family a home with the necessaries of 
life may always be assured. 

In a state of nature, every person has access to the 
soil, and can make his own living, but by reason of the 
civil law, which prevails in all the civilized nations, he 
is cut off from the soil, and the law recognized a prop- 
erty right in the individual person or corporation, often 
a non-resident; and the laborer cannot go upon this 
land without consent of the owner, and the government 
thus deprives him of having access to the soil, which 
would enable him to supply his wants, and therefore, 



26 PROGRESSIVE GOVERNMENT 

the govern -merit, as a matter of right and as a matter 
of equity, should furnish the laborer employment in 
times of depression, that he may maintain himself and 
family, if he has one. 



IS THERE ANY PRECEDENT FOR THIS 
MODE OF ESTABLISHING A HOME ON GOV- 
ERNMENT LANDS? 



Yes, after the Boer war, England loaned to the peo- 
ple of the Transval country, money at three per cent 
per annum, to buy land and build houses; and many 
millions of dollars were loaned in this manner by Eng- 
land to her Boer subjects. 

The governmjent of New Zealand also advances 
money to buy land and build houses for its citizens, 
and otherwise improve the property ; and Australia 
does the same; and their subjects can pay the money 
back in small payments, equalling a low rental value 
for the property. 

The city of Aukland, in New Zeland, furnishes the 
citizens with land in small tracts for homes, and ad- 
vances money to build houses and otherwise improve 
the property, and every house that is built in this man- 
ner, adds so much to the wealth of the country, and the 
government of New Zealand, is benefited to that extent, 
and the citizen acquires a home, and in times of depres- 
sion in business, the local and colonial government 
furnishes employment to the people, that they may 
always have the means of support. 

The city of Glasgow, Scotland, a few years ago, 
exercised the right of eminent domain, and took the 
property from the landlords in the great tenement 



BY GEORGE CAMPBELL 27 

districts of the city, where the people were compelled 
to live in mere shacks, and pay an enormous rental 
for this privilege. 

The government, after acquiring title to the land, 
tore down the shacks, and erected modern brick build- 
ings, with electric light, hot and cold water baths, and 
employed janitors to keep everything in condition. 
These buildings were rented to the wage earners at a 
rental merely sufficient to pay the expenses of keeping 
the property in repair, and six per cent on the capital 
invested; and these tenants are paying a rental for 
the property, much less than they paid for the shacks 
they previously occupied; and the death rate in this 
portion of the city, which was very great, especially 
among children, has diminished more than forty per 
cent, and the city provides work for the wage earners, 
when they cannot otherwise procure employment, 
which enables the laborer to always pay his rentals 
and provide for his family. These facts are furnished 
by the lord mayor of the city of Glasgow. 

The City of Ulm, Germany, is another that could be 
cited that has made rapid progress in municipal gov- 
ernment, The city has taken over to itself the land ad- 
jacent the city and sells it in small tracts to the citi- 
zens for homes. 

The city builds the houses and otherwise improves 
the land so as to make comfortable homes, and fur- 
nishes employment to the citizen at wages that will 
enable him to maintain his family and pay for his 
home. 

The payments for the homestead, average about 10 
per cent, per annum, on the actual cost, and this enables 
the citizen to obtain title to his homestead in about ten 
years. 

Mr. Waggoner says, there are great numbers of 
people acquiring homes under these conditions, that 



28 PROGRESSIVE GOVERNMENT 

could not procure them otherwise ; and the city is fast 
becoming known as the city of homes, owned by the 
people ; and the city's ownership of its public utilities 
and several factories has added greatly to the income 
of the city, and the city as a municipality, owns and 
operates these properties in the interest of the people. 

Of course, this is municipal or collective ownership, 
but it is not such a bad proposition after all, and 
municipal ownership must prevail to a greater or less 
extent in adjusting conditions between labor and capi- 
tal, and the services now rendered to cities by public 
service corporations, must in the near future cease; 
and these services must be rendered by the city, as a 
municipal corporation, to its citizens thus allowing 
the people the profits, in the exercise of these local gov- 
ernment functions, instead of corporations. 

All cities are not financially able to provide homes 
and employment for their people, and some cities are 
indisposed to do so, and in order that all the people 
may secure equal benefits from the government policies 
herein suggested, it is proper for the general govern- 
ment of the United States to work in conjunction with 
the states and the local city government in inaugurat- 
ing such a policy, in the interest of the people. 

A corporation, is an association of individual per- 
sons, under a charter, in a co-operative sense, to dis- 
charge certain public services to the people; and it 
seems a little peculiar that the people in a collective 
sense have not been educated up to the standard, where 
they could see it to their interests, to discharge these 
duties for themselves. We need to teach in our public 
schools the principles of co-operation, and that, if co- 
operation is a good thing for a few persons, that con- 
stitute a corporation, it is a good thing for the many 
persons, constituting a city, and that a city as a munici- 
pality, has much greater power, in a co-operative sense, 
than the few individuals that form the corporation. 



BY GEORGE CAMPBELL 29 

The people must learn, that any service, that is 
necessary to the citizens of a city, that will justify a 
few persons, in getting together and forming a public 
service corporation, will justify the municipality in 
creating a department to discharge the service, for the 
benefit of the people; and save all the profits to the 
municipality, that would otherwise, go into the pocket 
of the public service corporation. 

Why should a city grant a franchise to a corpora- 
tion to furnish the people with water, light, heat, gas, 
transportation or any other service, when the city can 
render these services to the people much cheaper, and 
a better service than is rendered by a public service 
corporation ? 

Some municipalities are slowly realizing this fact, 
and are taking over to the city, street railways, tele- 
phones, waterworks, electric light plants, gas plants 
and other public service plants, and in each instance, 
so far as we are informed, the service is much better 
and cheaper to the people when operated by the city 
than when rendered by a public service corporation, 
which must always have large dividends and often de- 
clared on watered stocks, and high salaries for their 
corporation officials. 

The City of Coffeyville, has a population of about 
18,000 persons, and the city owns its electric light 
plant, and waterworks plant, and the people have a 
good service and at a price much less than that charged 
by the public service corporations to the people of other 
cities, having a population about the same as our own. 

The two plants that the City of Coffeyville own 
and operate, have proven a valuable asset to the city, 
for after paying all operating expenses, including re- 
pairs, from the gross receipts, these two plants annual- 
ly net the city over $35,000, which stands to the credit 
of the city, and why is not this profit as good to the 
city as to the public service corporation, and is it not 



30 PROGRESSIVE GOVERNMENT 

a good business proposition for the cities to operate 
the public service plants? 

There is a public service corporation at the present 
time, furnishing gas to the City of Coffeyville and its 
consumers, and the city is required to pay 5c per 
thousand cubic feet for gas, for its waterworks and 
electric light plants, and 20c per thousand cubic feet 
for domestic use. In the last six months however, the 
city has put down five wells, and it is furnishing gas 
for its plants, for less than four-tenths of a cent per 
thousand cubic feet, and the profit upon the city gas, 
at four-tenths of a cent per thousand cubic feet, is 
sufficient to pay all the expenses of the city in sinking 
the wells, paying royalties on leases, piping the gas 
and making connections with the city plants; and 
the four-tenths of a cent per thousand cubic feet for 
the gas developed by the city, is sufficient in four years, 
to reimburse the city for all the money expended in- 
cluding interest on the investment. In other words, 
the city will own the gas wells, the pipe lines, connec- 
tions and everything of this nature and have them all 
paid for in four years, calculating the gas at four- 
tenths of a cent per one thousand cubic feet, and after 
the four years expires, the cost of the gas to the city 
will be reduced to about two mills, for every one thous- 
and cubic feet; and if the City of Coffeyville would 
sink wells enough to supply the inhabitants of the city 
with gas for all purposes, including manufacturing 
purposes, and charge 12!/^c per thousand cubic feet 
for domestic use, and 5c per thousand cubic feet for 
factory purposes; the profits to the city over the cost 
of production of the gas, and the profits upon the elec- 
tric light plant and waterworks plant, would pay the 
entire running expenses of the City of Coffeyville, and 
relieve the people from all taxes for this purpose, and 
would leave a surplus in the city treasury each year of 
over $15,000; and as a business proposition, why 
should not the city own its own gas plant, and save 



BY GEORGE CAMPBELL 31 

these vast profits to the citizens of Coffeyville, instead 
of allowing them to go to a public service corporation. 
The City of Coffeyville had an option on 1,300 acres 
of gas land to the southwest of the city about five miles 
distant, until after the spring (1911) election, and the 
royalty asked was $10.00 per month on each gas well, 
from which the city used the gas. The people voted at 
the election in favor of the gas company, and since that 
time, a well has been drilled by other parties in this ter- 
ritory, and the well is a good producer and discharges 
gas to the amount of about 16,000,000 cubic feet per 
day. The selling price of this gas in the city for domes- 
tic purposes, as fixed by the gas company, is twenty 
cents per thousand cubic feet, and at this price the daily 
discharge of gas from this well, amounts to $3,200, and 
in the year $1,168,000, and the cost of sinking the well 
and piping the gas to the city, is a little less than 
$23,000 and the average life of a gas well in this terri- 
tory is about fifteen years. Is it a wonder millionaires 
multiply, when the people are so blind to their general 
welfare, and the interests of the city? 

The question as to whether the city should own its 
gas plant, or should buy its domestic gas from the gas 
company was squarely submitted to the people of Cof- 
feyville at the 1911 election, and they voted in favor 
of buying the gas from the public service corporation, 
and pay for domestic purposes, 20c per thousand cubic 
feet, leaving the price for factory gas to be determined 
between the gas company and the factories. 

The campaign upon this question, was remarkable 
in many respects, and was carried on principally by 
circulars, and these circulars with the result of the cam- 
paign, will appear as an appendix to this pamphlet that 
the people may understand the methods employed by 
corporations in conducting elections, and it will serve 
to show the people the power they will have to meet, 
in their efforts to control corporations, whose policy 



32 • PROGRESSIVE GOVERNMENT 

seems to be to use whatever money that may be neces- 
sary to accomplish their ends, and charge to the ex- 
pense account of the company, and then raise the price 
of their service or the product to the people, until reim- 
bursed fully for the sums expended. 



ARE NOT CORPORATIONS NECESSARY IN 
THE DEVELOPMENT OF A COUNTRY, AND HOW 
COULD THE PEOPLE DISPENSE WITH THEIR 
SERVICES? 



I will say in answering this question from the 
standpoint of the people, that as a general proposition, 
the government ought to do for the individual what he 
cannot do for himself. 

For instance, I can raise 1,000 bushels of wheat, 
and can do this as an individual, but I cannot build a 
railroad over which my wheat may be hauled to sea- 
board, where it will command the greater price, for I 
have not the means to construct such an enterprise, but 
the government has, and should build the road and 
operate it, and not delegate this power to a corpora- 
tion, whose sole object in accepting a franchise to build 
the road, is not to render a public service, but to make 
money ; and many of these corporations are exercising 
a power to tax the people, that the government itself, 
would hardly dare exercise, and no government, how- 
ever oppressive, has ever been known to falsify its 
records, to cover up its profits, as corporations have 
been known to do. 

In 1897, the railway freight rates in Kansas were 
so high that many farmers were burning corn for fuel, 
and the governor of Kansas, in conjunction with the 



BY GEORGE CAMPBELL 33 

governors of several other states, appointed commis- 
sioners to try to get a reduction in freight rates, and 
the governor of Kansas, appointed five persons, upon 
this commission, two from the senate and three from 
the House to meet like commissioners appointed from 
Nebraska, Colorado, Missouri, Oklahoma, Texas, and 
some other states and these commissioners were to 
meet with the railway officials and Interstate Com- 
merce Commission at Austin, Texas, to procure if pos- 
sible, a reduction in freight rates to tide water, so that 
the products from these interior states, could be shipped 
through gulf ports, instead of being hauled by rail, 
half way across the continent, in order to reach tide 
water. 

The writer at that time, was a member of the Kan- 
sas Senate, and was appointed one of the commissioners 
from Kansas, to meet with the other commissioners 
from the several states, and the joint commission con- 
vened at Austin, Texas, in April, 1397, and organized 
under the name of the Gulf and Interstate Transporta- 
tion Commission, and the writer was elected chairman 
of the interstate organization, which position he still 
holds. 

It was intimated to the commission, that the rail- 
way companies were not making money, and were run- 
ning in debt, and could make no reduction in rates, and 
the commission had to prepare to meet this issue, and 
as chairman of this commission, I went to the chief 
bookkeeper of one of the great railway corporations, 
that had a line of road extending into the gulf ports, 
and the party I went to see, I had rendered a service 
several years prior, which he said he would always re- 
member, and I told him I wanted information, as to 
how the railway companies managed to cover up their 
profits. 

At first he refused to give me the information, but 
on being assured that his name would never be made 



34 PROGRESSIVE GOVERNMENT 

public, or connected in any manner with this informa- 
tion, he opened his books and showed me their samples 
of "Frenzied Finance," and it seemed strange that such 
things can be done, and the guilty parties keep outside 
of the penitentiary. 

This railway company, in whose service my friend 
was employed, was one of the government subsidized 
roads, receiving 12,800 acres for every mile of road, 
and about $200,000,000 in government bonds, on their 
9,000 or more miles of railway. In addition to these 
subsidies, stock ranchers subscribed for large blocks 
of stock in this road, and bonds were voted by cities 
and counties, and exchanged for railroad stocks, until 
the municipalities and stockmen had subscribed for 
about $150,000,000 of the stocks cf this railway com- 
pany; and the company in building its road, found 
there was not land enough included within its forty 
mile grant, to equal 12,800 acres to each mile; and it 
went outside of the forty rrnle strip, and located coal 
lands, worth many millions of dollars. Many of these 
coal mines are now open, and some of the veins prove 
to be nineteen feet in thickness, and of superior quali- 
ty, and their value cannot at this time be accurately 
estimated. 

When the wealth of these coal mines were made 
known to the company, the officers organized them- 
selves into a coal company, for the purpose of covering 
up profits, and the railway company bought its coal 
from the coal company (themselves) at an enormous 
price, and by this mode, much of their profits were con- 
cealed. 

The officials of the railway company also organized 
themselves into a rolling stock company, and took pos- 
session of the rolling stock of the railway company; 
and the railway company leased from the rolling stock 
company (themselves) the necessary cars to operate 
their road, and paid enormous rentals therefor, and 



BY GEORGE CAMPBELL 35 

this enabled the company to cover up much more of its 
profits from the view of the general public ; and other 
companies were organized from these officials, but I 
do not call them to mind, but one I think, was to oil 
the rolling stock, for which a fancy price was paid in 
order to cover up the profits of the company. 

After this road had been operated for several years, 
the stockmen of the West, who had purchased stock in 
the road, wanted to see some dividends coming their 
way, and the municipalities that had voted bonds and 
took stock in the enterprise, wanted dividends and be- 
gan to threaten the company with litigation. 

The company's mode of keeping the books, showed 
a deficit each year in the treasury of the company ; but 
this did not satisfy the stockmen, nor the counties and 
cities that had taken stock in the road, and it was evi- 
dent to the company that these parties would have to 
be paid dividends, or "be squeezed out," and it was 
thought best to squeeze them out ; and the railway com- 
pany gave one of its memberes a first mortgage bond 
on the road, covering the whole system, and the inter- 
est upon this bond soon defaulted, and foreclosure pro- 
ceedings were had in the United States Court, and all 
these cities, counties and the stockmen had their inter- 
ests foreclosed, and the stock they held in the railway 
company became valueless and they were "squeezed 
out" and could cause no more trouble. 

It seems quite evident from reports, that what this 
corporation did in the way of bookkeeping, is practiced 
to a greater or less extent by other corporations ; and 
for this reason a gulf is gradually opening between the 
people and preditory wealth, as represented by these 
great corporations, and as these injustices are prac- 
ticed upon the people, and the persons responsible there- 
for, remain outside the prison walls, so long will the 
gulf between capital and labor widen, until there comes 
a final contest between the natural man and corpora- 



36 PROGRESSIVE GOVERNMENT 

tions for the control of the government, and for a more 
equitable distribution of wealth. 

All corporations of great wealth we are glad to say, 
do not seem to resort to this covering up process as 
outlined herein, and while their profits may be exorbi- 
tant, they seem willing that the general public should 
know the facts, and in proof of this, we have the testi- 
mony before us of John D. Rockefeller, recently given 
by him in New York City, in an investigation of the 
affairs of the Standard Oil Company and their alleged 
discriminations. He stated frankly under oath, that 
on an investment of $67,000,000, the profit of the com- 
pany in eight years, above operating expenses, was 
$891,000,000 ; that $300,000,000 of this sum had been 
loaned at interest, and the remaining $591,000,000 had 
been paid to the stockholders in dividends, during the 
eight years, showing the profits of this company, an- 
nually for the last eight years, to have equaled 165 per 
cent. Now, as a matter of business and of right, would 
it not have been better if the government, state or na- 
tion, or jointly, had developed these oil and gas proper- 
ties, and saved these enormous profits to the people, in- 
stead of allowing a few person who comprise the cor- 
poration, to absorb these enormous sums at the expense 
of the general public? And I repeat, that any line of 
business that will pay a few persons to incorporate to 
engage in, will pay the government as a municipality, as 
a state, or as a nation, to engage in; and the people 
should be educated along the lines of co-operation, for 
public ownership is co-operation, through govern- 
mental agencies, each person having his proportionate 
interest in the property operated. 

The government paid for building the several Pa- 
cific railways from the Missouri river to the Pacific 
coast, more than three times their actual cost, as es- 
timated by experts in the railway service, and it seems 
strange that the government would build these roads, 
at this enormous expense and allow the railway com- 



BY CxEORGE CAMPBELL 37 

panies to own and control them instead of the govern- 
ment. Why should not the government have built these 
roads on government account, and owned and operated 
them like some of the European nations do, and saved 
to the government two-thirds of the expense, and be- 
sides, it would have saved the empire of land, that was 
donated by the government, to aid in their construc- 
tion, which land ought to have been conserved for the 
people. 

Is it the lack of wisdom on the part of the law 
makers, that the government of the United States, 
should in every possible way, favor corporations, to 
the detriment of the natural person, or is it due to the 
assumed fact that many of the congressmen and sena- 
tors have been given large interests in these proposed 
enterprises, that are carried forward by government 
subsidies, but in the name and under the ownership of 
a corporation, composed largely of United States Sena- 
tors. Is it a wonder that Senators become wealthy 
and that the Senate of the United States is now desig- 
nated "The American House of Lords," by reason of 
the wealth of its members? 

Corporations have recently secured power sites in 
Alaska and in many of the new states of the West, 
worth hundreds of millions of dollars, and it is said 
and published in the newspapers, that many Senators 
and members of the Lower House of Congress, hold 
great blocks of stock in many of these enterprises, and 
the government has recently spent large sums of money 
in constructing irrigating ditches, by which water has 
been supplied, to many millions of acres of arid lands 
of the West, and these lands by reason of the water, 
have been made productive and of great value, and they 
are exceedingly fertile and only needed water to make 
them productive, and this, the government supplied, 
and now it appears, that this land which is selling at 
from $100.00 to $300,000 per acre is nearly all owned 



38 PROGRESSIVE GOVERNMENT 

by corporations, with Senators and members of the 
Lower House holding large interests. 

In addition to acquiring these irrigated lands of 
great value, it now appears that corporations are ac- 
quiring many millions of acres of timber land, lying 
in Michigan, Wisconsin, Minnesota, Washington, Mon- 
tana, Oregon and several other states, and the people 
have received nothing in return for these properties, 
and it seems from the expose in the election of Senator 
Lorimer, that the lumbermen are seeking to acquire 
further donations of timber, and with this in view, 
have taken a great interest in Lorimer's election, at 
least to the extent of $100,000 as appears from the 
testimony taken in the investigation. 



WHILE WE HAVE TO ADMIT, THAT THERE 
IS GRAFT IN AND OUT OF CONGRESS, IS THERE 
NOT LESS GRAFT AT THE PRESENT TIME, IN 
PUBLIC AFFAIRS THAN THERE HAS BEEN FOR 
MANY YEARS? 



I think the efforts that are being made by the 
Progressives in both houses of Congress, is having an 
effect to check graft ; but when we take into considera- 
tion, the Morgan-Guggenheim Alaskan syndicate, and 
how near it came to getting the Alaskan coal fields, the 
richest in the world, and for nothing comparatively 
speaking, it would seem that graft has not been entire- 
ly eliminated. 

The government is now offered a royalty of 50 
cents per ton for the Alaskan coal, and this royalty 
would net the government over $20,000 an acre for this 
land ; and on all the coal lands thus far discovered in 



BY GEORGE CAMPBELL 39 

Alaska, this royalty would net the government 
$17,000,000,000 and the actual value of the coal that 
this syndicate came so near acquiring amounts to over 
$61,000,000,000 and equals in value about one-half the 
entire property of the United States, as shown by the 
census. The coal vein in many places, is sixty feet in 
thickness, and seems to be the storehouse of the fuel 
for the coming ages. 

Mr. Roosevelt is certainly entitled to much credit 
in convening the governors of the several states, while 
he was President in a conservation congress, to take 
the initiative to conserve the natural resources and 
wealth of the United States, for the people ; instead of 
allowing these properties to be absorbed by corpora- 
tion syndicates to the detriment of the people. 

Mr. Pinchot, Glavis, Garfield and others, who made 
the gallant and successful fight for the people, to con- 
serve the Alaskan coal fields, are entitled to the ever- 
lasting gratitude of the people of the United States. 
These men lost their government position by reason 
of their fight for the people against Ballenger (the 
Secretary of the Interior) and other high officials of 
the nation, who wanted the syndicate to have these 
lands. Just what Ballenger's interest was, if any, in 
this syndicate is not disclosed by the evidence. 

When the Morgan-Guggenheim syndicate had lo- 
cated the coal lands in Alaska, and had made arrange- 
ments to procure title to the Cunningham claims and 
some others, the syndicate then began the agitation of 
a railway with land grants, and bonds to aid in the 
construction ; and were preparing to move upon Con- 
gress for this purpose, and the public press began the 
education of the people on this line similar to the initia- 
tive taken prior to the building of the several Pacific 
railways, from the Missouri river to the Pacific coast ; 
and when the proposed lines of the New Alaskan rail- 
roads were examined by experts, it was found that the 



40 PROGRESSIVE GOVERNMENT 

proposed grants of land to these lines of railway, 
would have enabled the syndicate, if successful, to get 
title to the greater part, if not all of the land that con- 
tained the Sixty-one billion dollars worth of coal, in 
addition to the proposed bond issue; but their scheme 
for the present at least, is blocked by Pinchot, Glavis, 
Garfield and others, who the American people should 
not forget in the future years. 

Think what this scheme meant to the government 
of the United States, and the people; the issuing of 
bonds, sufficient to more than build the proposed road 
in Alaska, and the giving of these bonds to the Morgan- 
Guggenheim syndicate, and in addition thereto, grant 
them a tract of land nearly half as large as the German 
empire, and coal to the amount of about one-half the 
value of all the personal and real property of the United 
States. Is it a wonder, that millionaires multiply under 
such practices; and they call these methods by which 
the general public is looted ''business methods," and 
the frauds and corruption resorted to in accomplishing 
their ends, are pointed out as ''shrewd" business meth- 
ods. Is it a wonder that J. Pierpont Morgan under 
such a system, could own and control one-ninth of the 
entire property of the United States? 

The Wall Street Journal, in commenting upon the 
facts that the banks of the country are forming a trust, 
and will soon be merged under one management, in re- 
ferring to J. P. Morgan, says : 

"The Morgan influence covers institutions and en- 
terprises having assets and capitalization of twelve bil- 
lion dollars, equal to one-ninth of the entire wealth of 
the United States. The railways controlled and financed 
by the house of Morgan, represent one-third the gross 
earnings of all the railroads of the United States, and 
the banking power of the banks and trust companies 
controlled by the house of Morgan is 10.7 per cent of 
the entire banking power, of all the banks and trust 
companies of the United States." 



BY GEORGE CAMPBELL 41 

The same Journal in a recent article, about the 
amalgamation of the interests of the great financial 
concerns of the country, says: 

"So close has become the alliance and amalgamation 
of the leading financial institutions in Wall Street, 
during the last three months, that almost absolute con- 
trol of the country's financial affairs is now centralized 
in the hands of a very few men, with J. P. Morgan at 
their head, and all are working in concert to this great 
end." 

The following names are then given: Baker, Still- 
man, Rockefeller, Frick and Vanderbilt, with Morgan 
at the head of this great financial merger. Then in 
referring to the power of this concern, the Journal 
says: 

"This financial institution could reduce credit to 
such a degree as to cause extreme money stringency, 
and great commercial disaster. 

"It could tie up the cash holdings of New York 
banks, by demanding certification of checks for enor- 
mous sums of money. 

"It could deplete the bank reserves in New York 
by causing shipments of cash to different parts of the 
country. 

"It could make the money rate of interest what it 
chooses, from 2 to 100 per cent, on call loans. 

"It could cripple the financial operations of the gov- 
ernment to an alarming degree. 

"It could dictate the financial operation of the great 
railway systems of the United States, and all the indus- 
trial concerns of the nation. 

"It could bring on a panic, that would wreck the 
interests of the entire country." 

And then referring to the banks, the same authority 
says: "Morgan's, gobbling up of the trust companies 
and banks, has little more than begun, according to the 
financial authorities in Wall Street ; and Morgan's ab- 
sorption of one great money house after another, meets 



42 PROGRESSIVE GOVERNMENT 

with no opposition from the Rockefeller interests, 
which leads to the rumor, that there is an understand- 
ing, that may eventually lead to the national city bank. 
(Rockefeller's) participating in this money merger 
combination trust." With such a combination affected, 
the business of the country will be under its control, 
unless the people arise and change the system that 
makes such mergers possible. 



IF A MONEY TRUST IS FORMED IN THE 
UNITED STATES, AND OPERATED UNDER ONE 
HEAD, AS PROPOSED IN THE MORGAN MERG- 
ER; WHAT WILL BE THE EFFECT UPON THE 
PEOPLE OF THE UNITED STATES, AND THE 
BUSINESS INTERESTS? 



The money trust, is the most formidable of all 
trusts, and when administered under one head, it be- 
comes a menace to the business of the country, and the 
people in general; for it can wreck the industries at 
will, by refusing to make loans and forcing payment 
of their outstanding loans, and by these means, con- 
tracting the money volume of the nation to a degree, 
th?t makes the available money insufficient to meet the 
requirements of business. 

The issuance of money, is a government function, 
and should not be delegated to banks; and from the 
wording of the constitution of the United States, it is 
clear that the framers of that instrument, intended 
the government to exercise the power to issue money, 
in the interest of the people. 

Article one, section eight, and division four of the 



BY GEORGE CAMPBELL 43 

Constitution of the United States, clearly delegates this 
power to Congress, for it says, that Congress has the 
power "to coin money, regulate the value thereof and 
of foreign coins, and fix the standard of weights and 
measures" 

Then under section ten of the same article, there is 
a prohibition against the state, from exercising the 
power to coin money. It says: "No state shall enter 
into any treaty, alliance, or confederation; grant let- 
ters of mark or reprisal; coin money; emit bills of 
credit; make anything but gold and silver coin a 
tender in the payment of debts; pass any bill of at- 
tainder ; expost facto laws, or laws impairing the obli- 
gation of a contract, or grant any title of nobility. ,, 

In these two sections, it is made very clear, that a 
state cannot coin money, or regulate its value; and 
cannot emit bills of credit to be used as money, as many 
of the colonies had done prior to the Revolutionary 
war ; and the state is prohibited from making anything 
but gold and silver a legal tender in payment of debts. 

The power to emit bills of credit, and make them a 
legal tender is lodged somewhere, and when it is de- 
nied to the state, this leaves this important function to 
the congress of the United States; and Congress has 
exercised this power on many occasions by the issuance 
of United States treasury notes (greenbacks) and there 
is now outstanding of these issues, about three hun- 
dred and forty-six million dollars and these notes are 
conceded to be the most convenient and best money 
that the people of the United States ever used; and 
they pass current in every nation throughout the civil- 
ized world, for it is a government obligation, and is a 
lien upon all the real, personal and mixed property of 
the United States, and is in effect, a check of a great 
nation, with an abundance of wealth and is readily re- 
ceived by all the nations of the earth. Is not the credit 
of a great nation a better basis for the issuance of cur- 



44 PROGRESSIVE GOVERNMENT 

rency, than the credit of a bank, and if so, why not 
use it? 

The banks a few years ago, attempted to get rid 
of the United States legal tender notes by retiring 
them, and filed a test cast in the Federal court, ques- 
tioning the power of the government to impart to these 
notes the legal tender quality, and the case was finally 
decided by the United States Supreme Court, in favor 
of the government. 

The court in brief, decided that the power to say 
what should be legal tender in the United States, was 
by the constitution, delegated to the Congress of the 
United States. That the section of the constitution 
that delegated to Congress the power to coin money, 
did not limit the government to coining metal; but it 
could place its coin or stamp upon paper as well as met- 
al, and that the government having the power to emit 
bills of credit, had an inherent right, to place upon the 
bills, or notes, whatever was necessary to make them 
current among the people, and cause them to circulate 
as money, and if by making them a legal tender, would 
increase their usefulness and make them more accept- 
able to the people, congress had the power to coin its 
promise to pay (greenbacks) into legal tender notes; 
clothed with the power to pay debts, and to be a full 
tender in payment of all obligations, public and private. 

This decree of the United States court, is of the 
greatest importance to the people of the United States, 
and far surpasses that of any other decision ever pro- 
mulgated by the Supreme Court, for it vests the power 
to coin and issue money, with the general government, 
where it belongs ; and the government should not dele- 
gate this power to the banks, but use it in the interest 
of the whole people, and it is a duty imposed upon Con- 
gress, and is clearly set forth in the constitution of the 
United States, and the decree of the Supreme Court. 

At present, the national banks are the only banks 



BY GEORGK CAMPBELL 45 

of issue in the United States, and the government pre- 
pares the notes of the banks and prints them ready to 
be signed by the president or vice-president of the 
bank, and the government charges the bank for the 
privilege of issuing these notes, one-fourth of one per 
cent semi-annually, on the notes in actual circulation; 
and these notes are loaned by the banks to the people, 
at an average interest of ten per cent per annum, and 
each note is a promise on the part of the bank that it 
will pay on demand the face value of the national bank 
note so issued. 

Each national bank note therefore, represents an 
indebtedness of the bank, and is so classed in their 
liabilities; and the bank is thus permitted to draw in- 
terest on what it owes, and is the only class of debtors 
known to our law, that can draw interest upon their 
indebtedness ; but this is another one of the many ad- 
vantages that is given by law, to the corporation, over 
the natural person. 

The natural person, who issues his note, pays in- 
terest upon it, but the national bank corporation issues 
its note, and draws interest upon it. Is this right? 
Should not the government issue these notes, so that 
the interest will go to the government, and thus benefit 
all the people, and relieve them to that extent from 
taxation? 

If a national bank note is lost, or destroyed, and the 
numbers not known, the bank does not have to redeem 
this obligation ; and is that much ahead ; and the num- 
ber of bank notes destroyed in our great conflagrations 
and otherwise lost, amounts to an enormous sum, in 
the course of years. If the government issues these 
notes, the losses or destruction of this currency would 
benefit the whole people, as the government would not 
have them to redeem, and the indebtedness represented 
by these lost or destroyed notes would be cancelled. 

In allowing the national bank to issue all the cir- 



46 PROGRESSIVE GOVERNMENT 

culating notes (except the $346,000,000 in green backs 
and the gold and silver certificates) the banks are en- 
abled to fix the price of property to the extent of their 
control of the currency, and if they get complete con- 
trol over the currency, as they are now trying to do, 
they can then fix the price of all property; and it is 
time for the American people to act, if they are going to 
protect their interests, from the bank merger, that is 
now in the process of formation. 

All debts, including taxes, are payable in money; 
and if Jones does work for Doe, or lets him have some 
articles of value, and there is nothing said about the 
pay, the law says Jones may demand money, and Doe 
must pay it, and the law thus compels Doe to pay 
money, in the discharge of his indebtedness, and at the 
same time, prohibits him from making it, under the 
penalties of counterfeiting the money of the United 
States^ and leaves Doe at the mercy of the banks for 
the money necessary to meet his obligations. Is this 
equity or is it just to Doe? 

If the government compels Doe to pay money, and 
prohibits him from making it, ought it not to provide 
a means, whereby Doe can always get the money, at a 
uniform rate of interest, if he has the security for the 
loan? 

The government says to the individual, if he wants 
to send a letter through the United States mail, he 
must place the necessary postage stamp thereon; but 
it has established a post office where the individual can 
get the stamp, at a uniform price; and the supply is 
always equal to the demand; and why should not the 
government do the same, with reference to money; 
and not leave the debtor to the mercy of the banks, 
which at any time can refuse to make loans, no matter 
how good the security offered, and the property of the 
debtor must be sacrificed to meet his obligations ; and is 
often times sold at a fraction of its real value, because 



BY CxEORGE CAMPBELL 47 

the banks ''are not discounting." Is it right? If the 
government was doing the banking the supply of money 
would always be equal to the demand, the same as 
postage stamps, and there would be no money panic, 
and no periods of depression in prices, following these 
financial disasters; for panics come in obedience to well 
known laws of trade, and as long as banking corpora- 
tions control the money, the people will experience 
these panics, followed by depression of prices and 
stagnation in trade. 

Let us trace the cause of panics, under our present 
financial system, and learn their origin, and this will 
better enable us to discover and apply a remedy. 

The national banks are the banks of issue as herein 
stated, and they loan to the people, their promises to 
pay, which answers the purposes of money, under our 
present system, and all the money circulating in busi- 
ness channels except as herein stated, before it goes 
into circulation, some one borrows it, and his note is 
in the bank drawing interest. 

The amount of loans by the banks to the people as 
given in the Banker's Encyclopedia, published by 
Kountze Brothers, of New York City, and edited by 
bankers, was on January 1, 1911, $14,544,592,000 and 
the interest on this vast sum at ten per cent, amounts 
to $1,454,459,200 per annum and in ten years, the bor- 
rower has paid back in interest, the entire amount of 
the loan and yet owes the principal, with no money to 
pay it, and of course, a panic is on. These panics come 
with great regularity every ten years under normal 
conditions, and are due to the absorption of the princi- 
pal of the loans by the interest payments, and will 
continue until we change our financial system. 

If we search the records of panics, we find there 
was a panic in 1837, 1847, 1857, but in 1867 it did not 
come because we had the war issue of United States 
treasury notes; the government of the United States 



48 PROGRESSIVE GOVERNMENT 

having issued these notes to partly pay the expenses of 
the war of the rebellion, and they greatly expanded 
the money volume of the country and made exceedingly 
prosperous times, but when this currency was funded 
into United States bonds by the act of April 12, 1866, 
the panic came in 1873, and again in 1883, and 1893 
under the Cleveland administration, and was due in 
1903, but it did not appear, because the government had 
caused a large increase in the money volume, by reason 
of the Spanish- American war, and the panic was de- 
layed until 1907, when it again put in an appearance, 
and will be due again in 1917, unless the people are 
wise enough to change the system to government 
banking. 

Panics would not come with such regularity without 
a cause, and this being true, as patriotic and intelli- 
gent citizens, we should study and discover the cause 
and apply the remedy, and stop these great financial 
disasters that overspread the country every ten years. 

For the purpose of illustrating how panics occur, 
we will separate the people of the United States into 
two great classes ; those who loan, and those who bor- 
row money; and if we allow Jones to represent the 
loaning class, and Doe the borrowing class, what holds 
good between these two individuals, will hold good be- 
tween the two great classes of our people. 

We will suppose that Jones loans to Doe $1,000.00, 
at 10 per cent, interest, and takes a mortgage upon 
Doe's property, to secure the payment of the loan, and 
to make the proposition simple and easily understood, 
we will suppose that this $1,000.00 loaned by Jones 
to Doe is all the money there is in the country. 

In one year, Doe pays to Jones his interest $100.00, 
and Jones places this money in his bank vault and 
$100.00 is taken from circulation; but the people do 
not miss it from the channels of trade, as checks will 
supply its place during periods of prosperity, for dur- 



BY GEORGE CAMPBELL 49 

ing prosperous times, we find that over 90 per cent, 
of 'the property is exchanged by means of checks; but 
when the panic comes, the people want money, and 
checks will not answer the purpose. Doe continues to 
pay his interest for nine years, and $900.00 is thus 
taken from circulation and placed in the bank vault, 
and there is now only $100.00 outside of the bank, 
remaining in circulation. Doe cannot get all of this 
$100.00, which would enable him to pay his interest 
the tenth year, for a portion of it has been lost, some 
has been laid away, and perhaps part has gone abroad, 
and Doe is compelled to default in his interest payment, 
no matter how much property he has, and when the 
interest is not paid, then Jones wants principal and 
interest, and a panic is on, for there is no money that 
can be borrowed, and Jones proceeds to foreclose his 
mortgage, and Doe's property is sold, and the differ- 
ence between debtor and creditor is thus adjusted, by 
the sale of the property to liquidate the debt. 

All observing persons have noticed that after a 
panic, there is a period of depression, when the sher- 
iffs and constables are busy selling the property of the 
debtor to meet his obligations, and when those debts 
are adjusted, between debtor and creditor, then busi- 
ness revives, prosperity returns and continues until 
another panic and another liquidation follows. 

But perhaps the reader will say that Jones would 
not place the interest he collected from Doe in his bank 
vault, but would loan it to the people and it would re- 
main in circulation, and that banks would do the same 
thing ; and this is probably true, but this makes no dif- 
ference in the final results, for when Jones loans the 
interest paid him by Doe, this interest becomes a new 
principal, and will be absorbed by the interest the same 
as was the original $1,000.00 and any amount loaned 
will be absorbed in the same manner. 

There are some other circumstances such as com- 



50 PROGRESSIVE GOVERNMENT 

pound interest that might be taken into consideration, 
but they are largely equalized by other conditions, and 
will not change the final result ; and the panic will come 
under present conditions every ten years, and is due 
to absorbing the money of the country by excessive 
rates of interest, until the interest obligation cannot 
be met, for lack of money and the crisis comes. 

Few persons are aware, of the rapidity with which 
interest will absorb the property of a country, but if 
we will take the compound interest table, we will be 
enlightened upon this question to our surprise, and we 
will not wonder that Morgan is enabled to gobble up 
the property of the country under the present financial 
system. 

The compound interest table referred to, says: 
That $1.00 loaned for 100 years, at 
3% interest, compounded annually, amounts to $19.25 

6%, compounded annually, amounts to $340.00 

8%, compounded annually, amounts to. . . . .$2,203.00 
10%, compounded annually, amounts to. . . .$13,809.00 
12%, compounded annually, amounts to. . . .$85,075.00 
18%, compounded annuall, amounts to. .$15,145,007.00 

247c, comp. annually, amounts to $2,551,799,404.00 

In looking over these figures, and knowing many 
persons who are paying 24 per cent, for money, it 
seemeed impossible that $1.00 at 24 per cent, compound 
interest, would amount to two and one-half billion dol- 
lars in one hundred years ; and I took these figures to 
an eminent college professor to have them verified, and 
after going over them carefully, he informed me they 
are absolutely correct. The banks as a rule, compound 
their interest quarterly in advance, and this would add 
largely to the final results, and several of the western 
states have legalized 24 per cent, interest on loans. Is 
it a wonder that Morgan wants absolute control of the 
money? 

Under the present financial system, it is easy to 



BY GEORGE CAMPBELL 51 

understand why the banks are governing the country ; 
and if an attempt is made to compel corporations to 
obey the law the same as natural persons are compelled 
to do, the banks at once threaten the business of the 
country with disaster, and these threats often deter 
the government from doing its duty. The government 
officials know, that all the banks have to do, to bring 
business disaster, is to quit loaning their funds and 
began to draw in the $14,544,492,000 due them upon 
loans and disaster follows, for the total stock of money 
in the United States on April 1, 1911, including that 
in the United States treasury was $3,540,418,414. 

The drawing in of the money and holding it in the 
bank vaults, has the same effect upon business as when 
interest charges absorb the principal of a loan, for in 
either case, there is not sufficient money in circulation 
to meet the obligations of the people and a panic fol- 
lows, and it is thus in the power of the banks, to bring 
on a money panic at any time they choose ; but under 
normal conditions as herein stated, the panic will ap- 
pear every ten years until we change our present bank- 
ing system. 

A money panic is impossible as long as the people 
have the money to meet their obligations, and it is only 
when the money volume is inadequate to meet the 
wants of the people, that the panics put in an ap- 
pearance. 

The panic of 1907, caused less business disaster 
than any other panic in the history of the country, as 
it was not followed by the period of depression in 
prices, which has characterized all other panics, in the 
history of the United States, and the reason for this 
is apparent, for the government came to the relief of 
the people and made large deposits of government 
money with the bank, at all commercial centers, and 
allowed the banks to issue clearing house certificates 
and cashiers' checks to take the place of money, and 



52 PROGRESSIVE GOVERNMENT 

Congress passed the emergency currency law, which 
allowed the banks to take out additional national bank 
currency on their assets, not to exceed $500,000,000 and 
this enabled the debtor class to meet their obligations 
and staid the ravages of the panic; but it will come 
again in 1917 unless the people change their banking 
system, by having the government do the banking, and 
make the loans direct to the people, and at a rate of 
interest that will not absorb the property of the coun- 
try, and will divorce the business of the people from 
the banks. 

Under the French system of finance, the govern- 
ment loans money direct to the people, at 3 per cent, 
per annum, and where the people desire to deposit their 
money with the government, it allows 2 per cent, per 
annum on the deposit ; and the one per cent, difference 
in interest on the deposit, and on the loans made to 
the people, pays all the expense of the system, and 
leaves a surplus to the credit of the government each 
year, and the business of France is wholly divorced 
from the banks, and a person in business has the assur- 
ance if he needs money, he can always get it from the 
government at 3 per cent, per annum, and he feels 
secure, and a business failure seldom, if ever, occurs. 

Prior to the Franco-Prussian war, the Rothchilds 
house of Paris and its branches, controlled the money 
of France, and the French government had done much 
to build up this great institution, and it is said the 
banks had agreed with the French government to fur- 
nish the necessary money to carry on the war against 
Germany; but the Rothchilds house in Berlin and 
London it is said, brought pressure to bear upon the 
Rothchilds houses in Paris, and at the critical moment 
when the crisis of war came, the banks refused aid to 
the government of France, and the government without 
money, was helpless in making an effective defense; 
and the German soldiers overrun the country, and 



BY GEORGE CAMPBELL 53 

France had to accept any terms of peace that Germany 
was willing to grant. Germany required of France as 
indemnity, a large section of her territory, Lorraine 
and Alsace and a money indemnity that was appalling ; 
and the financiers throughout the world, said that 
France could never pay it, and that Germany would 
enventually absorb the country. 

But France changed her banking system, and con- 
cluded that the "sinews of war" should thereafter be 
controlled by the government ; and under her govern- 
ment banking laws, her business has expanded in a 
much greater degree than any other nation of the 
world, and she has paid Germany in full, and has more 
money and wealth in proportion to her population, than 
any other nation on the earth, and her disaster in war, 
has proven a blessing in peace, as it divorced not only 
the government but the business of the people from 
the banks. 

In 1907, when the American panic was on, France 
offered to loan the government of the United States any 
amount of gold desired, but refused to loan a single 
dollar to banking corporations. She had evidently not 
forgotten the Franco-Prussian war incident. 



IF THE GOVERNMENT SHOULD ASSUME 
THE BANKING BUSINESS, WOULD IT NOT BE 
DIFFICULT FOR IT TO MAINTAIN ALL THE 
DIFFERENT CLASSES OF MONEY AT PAR? 



No, it would not, for the government now has to 
maintain all classes of money at par, and if it can do 
this for the banks, it can do it for itself. Why not? 

There is a misunderstanding on the part of the 



54 PROGRESSIVE GOVERNMENT 

people about what constitutes money, and what is 
necessary to maintain all classes of currency at par. 
Some think that gold only is money, and in order to 
maintain our currency at par, it must be redeemable 
in gold, but this is not the case. Gold is not money until 
it is coined any more than paper. If gold is money 
before it is coined, then it is a waste of time to coin 
it, and the coining should be stopped. The legal ten- 
der quality of gold is what makes it money, and this 
is stamped by the government upon it, and this legal 
tender quality imparted to silver or paper will make 
it money equal to gold. 

But you say, that the gold in a gold dollar is worth 
one hundred cents, and is of the same value before it 
is coined, that it is after it is minted, and while this 
is true, it is due solely to the law under which it is 
coined. 

We have the free and unlimited coinage of gold and 
this law is what makes the bullion value of a gold 
dollar the same as the legal value of the coin. If I 
have gold in any amount, the government will coin it 
for me free of charge. In fact, I do not have to wait 
until it is coined, for the government will pay me one 
dollar in money for every 25.8 grains of standard 
gold; and the government will coin it at its pleasure. 
This makes the bullion value of a gold dollar the same 
as the legal value of the coin. If I have 25.8 grains 
of standard gold, and the government will coin it into 
a gold dollar for me free of charge, I will not take less 
than one dollar for the 25.8 grains of standard gold 
before it is coined, and this law providing for the free 
coinage of gold, is what makes the bullion value of a 
gold dollar the same as the legal value of the coin, and 
our government is thus using its power in the interest 
of corporations who have large holdings, to maintain 
the price of gold, and the same law that puts a dollar's 
worth of gold in a gold dollar, if applied to silver, would 
put a dollars' worth of silver in a silver dollar without 



BY GEORGE CAMPBELL 55 

increasing its size, and did do so as long as we had the 
free and unlimited coinage of silver, the same as gold. 

Suppose our government should pass a law receiv- 
ing silver at the mints on the same basis as gold ; that 
is, enacting a law providing for the free and unlimited 
coinage of silver, the same as gold. Then any person 
having standard silver, could deliver it to the govern- 
ment and have it coined into standard silver dollars free 
of charge. That is, the government would coin every 
412.5 grains of standard silver, into a silver dollar 
free of expense to the owner of the bullion ; and this 
law would make the bullion value of a silver dollar 
the same as the coined dollar. 

If I had 412.5 grains of standard silver, and 
the government would coin it into a full legal tender 
dollar free of charge, I would not take less than one 
dollar for the 412.5 grains of standard silver before 
it is coined ; and the law would thus make the bullion 
value of a silver dollar the same as the legal value of a 
coin; and the same free and unlimited coinage is 
responsible for the bullion value of a gold dollar, being 
the same as the legal value of the coin. 

While we had the free and unlimited coinage of 
silver, the bullion value of a silver dollar, was never 
less than the legal value of the coin, and never went 
below the legal value of the coin, until the law provid- 
ing for its free and unlimited coinage was repealed; 
but as soon as our mints were closed against it, the 
price of the bullion declined, and the case would be 
the same with gold, if the United States mints were 
closed against it, the same as they are now closed 
against silver. 

The question now suggests itself, should our gov- 
ernment use its legal tender powers, given it by the 
Constitution of the United States and affirmed by the 
Supreme Court, to maintain the price of gold and not 
silver. Should not both metals stand upon their merits, 



56 PROGRESvSIVE GOVERNMENT 

and the government use its power to coin money and 
impart the legal tender quality to metal or paper, only 
in the interests of the whole people, and on government 
account as is now the case with silver, paper, nickel 
and copper. 

The idea of redeeming one dollar with another, must 
also be corrected, for it is mere childsplay. The ulti- 
mate redemption of all money is the products of labor, 
and gold has to be redeemed in this manner, the same 
as all other classes of money, and if gold was not so 
redeemed it would not circulate as money among the 
people. 

Suppose I have a five dollar gold coin, and I want 
a pair of shoes of like value, and the shoe merchant 
refuses to receive my gold coin for the shoes. Then 
I will not receive any more of these coins for I cannot 
exchange them for the product of the people; and no 
other person will receive these coins for the same rea- 
son, but the government has obviated this by making 
the coin an absolute tender, and I purchase my shoes 
from the merchant and owe him $5.00, and I tender 
him my $5.00 gold coin and it is a legal tender in pay- 
ment of debts and the merchant is compelled to receive 
it in full satisfaction of the debt, and the shoe mer- 
chant can compel his creditors to take it in like 
manner, and this makes the coin current money, 
among the people. At one time, I had a five 
dollar gold piece that had been partially melted and 
the government stamp destroyed. I tried to pur- 
chase products with this coin from several different 
merchants, but found no one that wouid receive it in 
payment of goods. Why? It was because the legal 
tender quality was gone, and I could not force them to 
receive it, in payment for their products. 

Now suppose, I have a five dollar legal tender note, 
issued by the government of the United States, I go 
to the shoe merchant and buy a $5.00 pair of shoes, and 



BY GEORGE CAMPBELL 57 

I owe him $5.00, and I tender him my $5.00 legal tender 
note and he receives it, as readily as the gold coin, for 
I could compel him to take it, if he refused to do so, 
because it is legal tender equal to the gold coin ; and he 
could compel his creditors to receive it in like manner; 
and it answers all the purposes of the gold coin, and is 
absolute money. Then why use the gold on which to 
coin money, when the United States notes answers the 
same purpose, and is much cheaper and more conven- 
ient for the people as a medium of exchange. It is 
the stamp of the government that imparts the legal 
tender power to all money, and it has a right to stamp 
this power on metal or paper as decreed by the Su- 
preme Court of the United States, and if this is true, 
then as a business proposition, should we not use paper 
as the substance on which to stamp the decree of the 
government instead of gold, and by a judicious use of 
this power to impart the legal tender quality to paper 
only on government account and exchanging the paper, 
made a full legal tender for gold and silver bullion; 
the government of the United States would in a short 
time own the bulk of the gold and silver of the world, 
and the government would not be out a single dollar 
in the purchase, and we have a verification of this 
statement in the Sherman act of July 14, 1890. 

Congress on the 14th day of July, 1890, passed a 
law known as the Sherman act, authorizing the pur- 
chase of four million five hundred thousand ounces of 
fine silver each month by the government and author- 
izing the government to issue treasury notes in the 
purchase, and the measure provided that the govern- 
ment should coin this silver, only on government ac- 
count, and as the needs of the government required. 

A large amount of silver was purchased under this 
act, in exchange for treasury notes and something 
over 168,000,000 fine ounces were bought before the 
repeal of the law, and more could have been purchased 



58 PROGRESSIVE GOVERNMENT 

in like manner, and much of this silver was bought as 
low as 73 cents in treasury notes for every 4121/2 
grains of standard silver, and the government made a 
profit of 27 cents on each dollar coined from this bul- 
lion, and was really out no money in its purchase, for 
it merely exchanged the legal tender decree of the gov- 
ernment stamped upon paper in the purchase of this 
bullion, which was certainly an easy way to pay for it, 
and in so doing, the government is using its power to 
coin money, in the interest of the people instead of 
banking corporations, and gets the full benefit. 

The gold standard men however, in a short time, 
got in their work against silver, in the election of Gro- 
ver Cleveland in 1892, who was an avowed enemy to 
silver; and the panic of 1903 came shortly after Mr. 
Cleveland assumed the duties of president, and the 
silver purchasing clause of the Sherman act was seized 
upon by the president and by the gold standard men in 
general, as the cause of the panic, and congress was 
convened by the president in 1903, and the purchasing 
clause of the Sherman act was repealed, but it did not 
lessen the ravages of the panic, but really intensified 
them, and business did not revive until McKinley took 
charge of the government in 1897. 

McKinley knew it was necessary that the people 
should have more money before business could revive ; 
and he ordered the silver that had been purchased 
under the Sherman act, coined into standard silver 
dollars and minor coins, and shortly after this, came 
the Spanish-American war with an issue of govern- 
ment bonds, on which the national banks issued addi- 
tional national bank currency, and with this large in- 
crease in the money supply of the country, greater ac- 
tivity prevailed in all lines of business, and the build- 
ing of the Panama canal, and issuing bonds therefor, 
and the use of these bonds, as a basis for national bank 
currency, and the enactment of the emergency cur- 



BY GEORGE CAMPBELL 59 

rency law, which allowed ten or more national banks to 
form a national currency association, and issue na- 
tional bank notes on the assets of the banks not to 
exceed in the aggregate $500,000,000 ; gave the people 
a larger volume of money than had prevailed for many 
years; and all the industries took on newness of life, 
with an upward tendency in prices on all lines. 

If the assets of the bank consists of state, county, 
city or other municipal bonds and the interest has not 
defaulted for ten years, the bank can issue national 
bank currency to the amount of 90 per cent of the 
value of the bonds, and on commercial paper, such as 
promissory notes, endorsed by at least two responsible 
persons, the bank can issue 30 per cent of their face 
value, etc., and all these provisions has served to in- 
crease the volume of money from about $1,750,000,000 
under the Cleveland administration to $3,540,000,000 
under the Taft administration, and business has kept 
pace with the increase in the money volume. 



DO YOU NOT THINK THAT THE BANKING 
BUSINESS IS TOO COMPLICATED FOR THE 
GOVERNMENT TO ENGAGE IN; AND THAT 
UNDER GOVERNMENT BANKING, THE BANK- 
ING INSTITUTIONS WOULD NOT BE LOCALIZED 
AS UNDER EXISTING LAWS? 



The banking business is not complicated, but there 
is an attempt made upon the part of those who control 
the money, to make it appear complicated, that the 
masses of the people may not understand it, and the 
banking business simply conforms to well known laws 



60 PROGRESSIVE GOVERNMENT 

of trade, and would be easily exercised by the govern- 
ment, more easily than the post-offices. 

The government is now conducting the banking 
business, for it issues every note and coins every dollar 
that circulates as money among the people ; but instead 
of conducting this business for the people and in the 
interests of the people, it is conducted for the banks 
and in the interests of the banks. 

Under government banking, the banks would be 
better localized than under the present banking sys- 
tem, and our postoffices serve as an example along this 
line. The postmaster is selected from the body of the 
people where the postoffice is established, and he is 
appointed by the government and qualifies by sub- 
scribing the oath of office and executing his bond, and 
when he takes possession of his office, he is a neighbor, 
the same as before and is interested in the affairs of 
the community, the same as before, and the postoffice 
is thus localized to a much greater degree than are the 
banks under the present system, for often many of the 
stockholders of the banks and sometimes, the main of- 
ficers, live in other localities, and even in other states 
and operates the bank in the community for the profit 
to the corporation, and not with a view to faithfully 
serve the public. 

If the government should establish banks on its 
own account, all the officers would be appointed by the 
government and would be taken from the body of the 
people, the same as the postmaster, and would qualify 
in a similar manner and give bond, but would probably 
have to pass a civil service examination in order to be- 
come a candidate for appointment. After assuming 
the duties of his office, he would be a neighbor the same 
as before, and the bank would be operated under in- 
structions from Washington, the same as are the post- 
offices ' and the individual having the proper security 
could always borrow money from the government bank 
for 3 per cent per annum, or could deposit his money 



BY GEORGE CAMPBELL 61 

and receive 2 per cent, per annum on the deposit, and 
the government would always have a supply of money 
equal to the needs of the people, the same as is the 
case with postage stamps, and you could always get 
your money and there would never be a time when you 
would be cut off by the statement "we are not dis- 
counting," and would not this be an improvement on 
our present banking system, where bankers sometimes 
act toward their customers, as does the Czar toward 
his subjects. 

Another method of government banking is possible 
by a slight change in the present national bank laws. 
Five or more individuals having the necessary securi- 
ties, can, by associating themselves together, incorpor- 
ate a national bank, and there is no good reason why 
all the people of a community should not be included 
in the corporation, and become stockholders in the bank 
as citizens of the community. 

Suppose Montgomery county, with an assessed valua- 
tion of about $60,000,000 should conclude to go into 
the banking business and organize a banking depart- 
ment and incorporate as a national bank of issue. 
The county would vote a bond in order to com- 
ply with the law, equalling we will say, ten per 
cent of the assessed valuation of the property of the 
county ; the bond to draw 2 per cent per annum inter- 
est, which interest of course, would come back to the 
county. The matter of interest is necessary in order 
to comply with the national bank act as it now exists. 

This bond is then assigned to the treasurer of the 
United States as security, that the county will redeem 
its obligations, after the manner of the national banks, 
and the comptroller of the currency at Washing- 
ton will then incorporate the banking department 
of Montgomery county as a national bank, and 
issue currrency to the county in the full sum of 
$6,000,000, and the Montgomery county national bank 



62 PROGRESSIVE GOVERNMENT 

would then put in as many branch banks, in the 
various parts of the county, as would be necessary to 
meet the business wants of the people, and the govern- 
ment would charge the county one-fourth of one per 
cent semi-annually on its currency in actual circulation, 
and relieve it from all further taxation, and the bank 
would allow the people two per cent on their deposits 
and charge them three per cent per annum, on the 
money borrowed from the bank. 

All officers of the bank would hold their commission 
from the government, and would be under bond, to in- 
demnify the county against all loss, and the banking 
business of the county would be absolutely safe, and 
the profits arising from conducting the business that is, 
the difference in the one-half of one per cent paid to the 
government and the three per cent charged the people 
on loans after paying all operation expenses, would 
leave a surplus to the credit of the county and this 
would relieve the people to that extent from taxation, 
and the bank would be administered for the benefit 
of the public, while a national bank as a private cor- 
poration, is administered solely with a view to profit 
for the corporation. Under such a system, the people 
of the county would provide themselves with the cur- 
rency necessary to transact their business and exchange 
their property, by using their own credit instead of a 
bank's and what would be done by Montgomery county 
upon this line, would be done by other counties, until 
the people were fully supplied with the necessary funds 
to transact their business throughout the nation and 
at a nominal cost. The people as a community, would 
thus use their own credit in the form of national bank 
currency, issued by municipalities to transact their 
business instead of depending on the banks as is now 
the case. 



BY GEORGE CAMPBELL 63 

/ CAN UNDERSTAND HOW THE GOVERN- 
MENT COULD CONDUCT THE BANKING BUSI- 
NESS IN THE EXCHANGE OF PROPERTY, 
EITHER AS COUNTY INSTITUTIONS OR BY 
DIRECT GOVERNMENT BANKING, AFTER THE 
MANNER OF THE POSTAL SYSTEM; BUT 
TRANSPORTATION AS CONDUCTED BY THE 
RAILWAYS, IS AN IMPORTANT FACTOR IN THE 
EXCHANGE OF PROPERTY AND COULD THE 
GOVERNMENT OPERATE THE RAILWAYS AND 
PREVENT THE ABUSES WHICH NOW OBTAIN 
IN THE CARRYING TRADE OF THE UNITED 
STATES? 



The government has demonstrated its ability to 
successfully operate the railways, and nearly all Euro- 
pean countries, own and operate their railroads, and 
the United States government has in many instances, 
where the management become involved in debt, so 
they could not pay, took charge of these roads, and suc- 
cessfully operated them by means of receivers and ad- 
justed their indebtedness, put them upon a paying 
basis, and turned them back to the company, thus 
demonstrating that the government, can successfully 
operate railways. 

With reference to the abuse of railway companies, 
in the carrying trade of the United States, there is cer- 
tainly a remedy; but the railway question should be 
carefully considered, before the remedy is applied. 
Every great industry that the government attempts to 
regulate, will affect every other industry to a greater 



64 PROGRESSIVE GOVERNMENT 

or less degree, throughout the United States, as all 
are interwoven to such an extent that care must be ex- 
ercised, in dealing with any branch of the industrial 
system, if we would avoid business disasters. 

The government however, is the only power suffi- 
ciently strong to regulate successfully, either of the 
great corporate interests of the United States, and any 
attempt on the part of the government to regulate the 
railway carrying trade, will meet with resistance on 
the part of all the special interests. The whole indus- 
trial system is bound together and will be affected by 
any effort to control the railways, and this will be evi- 
denced by the uncertainties in business, the closing 
down of factories, and the stagnation of trade in gen- 
eral, but the regulation is necessary and must come, 
and the quicker the government assumes its obligations 
to the people upon these lines, and discharges its duty 
and compels all public service corporations to act as 
servants of the people instead of their masters, the 
better it will be for all concerned, and the quicker will 
the crisis be met and passed. 

The railway corporations are supposed to be public 
servants and owe to the public, fair and equitable 
treatment, and any violation of this fundamental prin- 
ciple, under which their charters were granted, should 
be promptly punished, and the railway corporations 
must be taught that to discriminate against any indi- 
vidual or community is a wrong, and violates the fun- 
damental principles on which their charters were 
granted, and that such violation revokes their authori- 
ty to do business ; and that the government under these 
conditions, will assume control of their roads, and 
operate them in the interest of the public. 

The Texas & Pacific rate case, decided a few years 
ago, by the United States Supreme Court, was about 
the first act on the part of the railway companies, to 
challenge the attention of the general public, and direct 



BY GEORGE CAMPBELL 65 

them to the unjust discrimination in freight rates, and 
the logical results of these discriminations, unless 
checked by the strong arm of the government. And it 
was made apparent that the railway corporations must 
be confined to their duties as public carriers without 
discrimination, in any form or that government owner- 
ship must result, in order to protect the rights of the 
people. 

The Texas & Pacific rate case was the result of dis- 
crimination on the part of the Texas & Pacific Railway 
company in hauling goods from New Orleans to San 
Francisco and on which the railway company charged 
Americans more than three times what it charged 
Europeans for hauling the same class of goods, over 
the same line of railway from New Orleans to San 
Francisco. A brief of the court decision and findings 
are given in the report of the Interstate Commerce 
Commission at page 8 of the 1896 report. 

In the court review of this case, it is shown that 
the Liverpool and London manufacturers secured a 
rate of $1.07 per hundred pounds from Liverepool, 
England to San Francisco, California, and this $1.07 
per hundred pounds paid the through freight rate by 
water from Liverpool to New Orleans, and then over 
the Texas & Pacific railway, from New Orleans to San 
Francisco. The goods shipped consisted of boots, 
shoes, cashimere, cigars, cutlery, confectionery, gloves, 
hats, caps, laces, linen goods, saddlers goods, woolen 
goods, etc., and the Texas & Pacific merely received its 
proportionate part of the through rate of $1.07 for 
hauling these goods from New Orleans to San Fran- 
cisco, and the rate on the same class of goods manufac- 
tured or owned by Americans in New Orleans, was 
$3.70 on each one hundred pounds from New Orleans 
to San Francisco over the same line of road. It was 
easy to see, that this discrimination would destroy the 
effect of the American tariff, in protecting American 
industries, and in retaining the American markets for 



66 PROGRESSIVE GOVERNMENT 

American products, and would turn these markets 
over to Europeans. 

The court by a majority decision, favored the rail- 
way company, that the company had the legal authority 
to discriminate against American interests, in the man- 
ner stated, if it was to the interest of the railway com- 
pany to do so, in making their contract with other 
companies, upon a division of the rates ; but a minori- 
ty of the court consisting of Justices Harlan, Brown 
and Chief Justice Fuller, dissented from this opinion, 
but of course, the majority opinion has to govern and 
is the law, but Justice Harlan in his dissenting opinion 
says: 

"The question is one of unjust discrimination by 
an American railway company, against shippers and 
owners of goods and merchandise originating in this 
country and of favoritism to shippers and owners of 
goods and merchandise originating in foreign coun- 
tries. If the position of the Texas & Pacific Railway 
company be sustained, then all the railroads of the 
country that extend inland, from either the Atlantic or 
Pacific ocean, will follow their example, with the inev- 
itable result that the goods and products of foreign 
countries, because alone, of their foreign origin, and 
the low rate of ocean transportation, will be trans- 
ported inland from the points where they reached this 
country, at rates so much lower than is accorded to 
American goods and products, that the owners of for- 
eign goods and products, may control the markets of 
this country, to the serious detriment of vast interests, 
that have grown up here, and in the protection of 
which, against unjust discrimination all our people are 
deeply concerned. 

"I am unwilling to impute to congress, the purpose 
to permit a railway company, because of arrangements 
it may make for its benefit with foreign companies, en- 
gaged in ocean transportation, to charge for transport- 



BY GEORCxK CAMPBELL 67 

ing from one point to another in this country goods of 
a particular kind, manufactured in this country, three 
or four times more than it charges for carrying over 
the same route, and between the same points, goods 
of the same kind, manufactured abroad and received 
by such railway company at one of our ports of entry." 

The discriminations, such as appear in the Texas & 
Pacific railway case, and the juggling of accounts by 
the railway companies to cover up profits, as appears 
elsewhere in this booklet, naturally creates a distrust 
and enmity on the part of the people against these 
railway companies, and this is causing a large per 
cent of the people to advocate government ownership 
as a means, to prevent such abuses ; and it is now up 
to the government, to exercise such reasonable control 
over the railway carrying trade of the United States, 
as will prevent these abuses in the future, or govern- 
ment ownership will follow, and the government, in 
delaying action upon this line, invites a political up- 
heaval, that may not only result in the ownership of 
the railways by the government, but perhaps other 
public service corporations will be affected, and their 
property taken and managed by the government, in 
the interest of the people. 

The railway companies as they now exist, have a 
right to collect from the people, in rates, such a sum 
as will give them a reasonable per cent on the capital 
invested and pay operating expenses including repairs, 
but railway companies should not be permitted to issue 
stock and bonds to the amount of three or four times 
the value of their property, and collect from the peo- 
ple, in rates, a sufficient sum to pay dividends and in- 
terest charges upon these watered stocks and bonds, 
that represent no actual value. 

The government under an equitable law, should ap- 
praise all the railway property of the United States, 
at its actual value in money, and allow the companies to 



68 PROGRESSIVE GOVERNMENT 

issue stocks, in an amount only equal to the appraised 
value of the property, and then the government to in- 
sure equitable rates, should guarantee, say three per 
cent upon these stocks, and in addition thereto, should 
guarantee the payment of the operating expenses in- 
cluding repairs of the railways within reasonable limi- 
tation, and fix a rate for the transportation of persons 
and property, that will reimburse the government for 
all these expenditures. If the rate fixed by the govern- 
ment is not sufficient at first to meet all the expenses 
of the service, the deficit should be paid from the United 
States treasury, the same as in the mail service. 

Such a policy, would make the railway stocks as 
good as government bonds, and a person purchasing 
these stocks guaranteed by the government, would 
know that he was not buying water, but something that 
represented an actual investment, and on which a divi- 
dend of three per cent would be paid. 

A uniform rate of transportation, for persons and 
property should be considered by the government in 
fixing rates ; and this matter has been carefully calcu- 
lated by a man prominent in railway circles in St. 
Louis, and he informs me, that if the government would 
establish a uniform rate, for the transportation of per- 
sons and property to any part of the United States, at 
the same price, as in postal service, that $1.25 for 
1,000 pounds or less of merchandise, and $25.00 per 
car for merchandise, to any part of the United States, 
will pay the entire expenses that the government would 
assume, in a uniform freight service as outlined in this 
booklet. 

With such a system in vogue, our industries would 
take on newness of life, and states like Arkansas, rich 
in minerals, but with railway rates so high, their mines 
cannot be operated, would immediately assume work, 
and the California fruit, and the fruit from the eastern 
seaboard, could be supplied to many persons, who can 



BY GEORGE CAMPBELL 69 

now scarcely afford the luxury, and under such a sys- 
tem, products could be shipped a mile or across the 
continent, at the same price, and such a policy would 
convert the nation into a beehive of industry, and every 
locality would produce what it was best adapted to — 
produce and exchange products with other localities; 
and the commerce of the United States, would soon be 
doubled, and all products could find a ready market 
somewhere within the United States, and without be- 
ing consumed by corporations in exorbitant freight 
rates ; and new lines of railway, should be constructed 
where needed and the idle labor thus employed, and 
all the people would be benefited by such a system. 

The same authority informs me, that with the uni- 
form passenger rate of $1.00 for a mile ride or across 
the continent, would pay operating expenses of the 
passenger system, taking into account the increase of 
travel, that the system would insure; and while both 
of these services would perhaps have to be modified to 
some extent, they are worthy of consideration ; for, if 
a uniform rate for passengers and merchandise is a 
good thing for a great city, and necessary to the wel- 
fare of the city, why would it not be equally necessary 
and beneficial to a great nation, to have such a system? 

The government will now carry through the United 
States mail, four pounds of merchandise to any part of 
the United States for the same price, and if the uni- 
form price for four pounds of merchandise to any part 
of the United States is a good policy, then why would 
not a uniform rate on 1,000 pounds or a carload to any 
part of the United States be equally advantageous and 
beneficial to the people? 

The government of the United States is owned by 
the people, and why not have a policy that will be 
equally beneficial to all? The mail service of the gov- 
ernment which allows a person to send a letter a mile 
or across the continent for the same price, is certainly 



70 PROGRESSIVE GOVERNMENT 

an equitable service, and why not apply the same policy 
to the freight and passenger service within the whole 
United States? Such a policy should be considered in 
fixing rates, for if adopted, it would entirely do away 
with discriminations against individuals and communi- 
ties; and all patrons would be equally benefited, and 
have a square deal, the same as in the postal service, 
where all receive the same consideration, and pay the 
same price for the service eliminating the question of 
distance, a policy that is now being adopted by many of 
the European countries, and American railway com- 
panies often eliminate distance in fixing rates, and now 
have a rate in force that gives the shipper a lower rate 
from New York to San Francisco than to interior 
points in Kansas. 



/ CAN SEE HOW PUBLIC SERVICE CORPORA- 
TIONS CAN BE REGULATED AND CONTROLLED 
ON THE LINES SUGGESTED; BUT HOW CAN 
THE GOVERNMENT REGULATE PRIVATE COR- 
PORATIONS, THAT OPERATE OUR GREAT IN- 
DUSTRIES, AS MANIFESTED IN THE TRUSTS, 
AND OTHER GIANT MONOPOLIES THAT FIX 
PRICES UPON THEIR PRODUCTS, WITHOUT RE- 
GARD TO THE COST OF PRODUCTION. 



The regulation and control of private corpora- 
tions is easily accomplished. Let the government ap- 
praise these plants at their actual value in money. 
Then ascertain the number of employees necessary to 
successfully operate the plant, and what the labor is 
worth, calculated upon a basis that will insure the 



BY GEORGE CAMPBELL 71 

operatives wages that will enable them to live as be- 
comes American citizens, and enable them to support 
their families in like manner. These items of labor 
should be first considered, for as Lincoln said "labor 
is prior to capital and deserves the greater considera- 
tion ; that capital would not have existed, if labor had 
not first existed/' and this fact should not be lost sight 
of by the appraisers. Then take the cost of the raw 
material into account, and the cost of keeping the plant 
in repair, and add to these items a reasonable per cent 
on the capital invested, and then ascertain the amount 
of product of the factory, and fix the price on these 
products, so as to meet all these expenses, and the ques- 
tion is solved, independent of all tariff laws that may 
be enacted. 

The tariff law, will not under present conditions, 
lower the price of the manufactured product, or con- 
trol them in any form, while our factories are operated 
by trusts. If we had absolute free trade, under our 
present industrial system, foreign products would not 
come into the American market, in competition or at a 
lower price than that charged for like products manu- 
factured at home; and this is due to the existence of 
the trusts, that fixes the price of the products of the 
factory, without regard to the cost of production. 

Each of the various lines of the industrial system, 
in the United States, is now formulated into a trust, 
and is under one management, and competition is at an 
end for all time. The merger has come to stay, and 
the government must deal with conditions as they exist, 
and not as the government would have them exist. By 
reason of the merger, the trusts are easily formed, and 
the industries of the various nations, are now merged 
into trusts similar to those of the United States. 

Suppose there are one hundred factories in the 
United States manufacturing woolen goods. These 
products before the trust was formed were placed on 



72 PROGRESSIVE GOVERNMENT 

the market by the individual factories, in competition 
with each other, and low prices resulted. The factories 
however, in the course of time, became wise, and con- 
cluded to cease competition and to form a merger on 
plans as follows : 

The management of the one hundred factories get 
together and agree if possible, upon the value of each 
factory, and in case they cannot agree, then the factory 
is appraised at its actual value in money, and the 
merger is incorporated, and stock taken in the merger, 
by each of the factories in an amount equal to the 
value of each of these one hundred plants, and the fac- 
tories pass under one management, and competition 
ceases. The price of the products are then arbitrarily 
fixed by the merger without regard to the cost of pro- 
duction, and each factory draws from the trust, its 
proportionate part of the profits, and if the tariff laws 
of the United States were stricken down, all that is 
necessary would be to form an agreement between the 
trusts of the United States, and those of foreign coun- 
tries, and this creates the international trust or merger, 
and the prices will be maintained and arbitrarily fixed, 
on all the products throughout the world, and competi- 
tion will be wholly eliminated ; but if the government 
of the United States would fix the price of products on 
the equitable lines herein suggested, the tariff law and 
the influence of the trusts, would be powerless to raise 
the price above that fixed by the government, and if 
the trust should refuse to operate their plants, as was 
attempted in Australia, then the government could 
operate them through receivers as they are already 
organized under one head, ready for the government 
to take charge if necessary. 

In discussing with the manager of a gas plant, the 
government supervision of the business of the trusts, 
and the fixing of prices upon the lines suggested, in- 
cluding the price of gas and coal, the manager informed 



BY GEORGE CAMPBELL 73 

me, that his plant was in the gas merger, and that his 
company would never submit to the government super- 
vision of its business. He said the plants belonged to 
the merger, and that the property rights of the merger 
could not be interfered with, and that they would man- 
age their property to suit themselves, the government 
to the contrary notwithstanding. 

I called the attention of my informant to the fact, 
that by reason of the action of the trust in arbitrarily 
fixing prices, without regard to the cost of production, 
they had created an unrest among the people, and that 
this unrest forbodes a political upheaval, and perhaps 
disaster to the special interests, that now dominate the 
political affairs of the state and nation, and asked him 
if he did not think it the part of wisdom for the special 
interest to make concessions and to submit to such rea- 
sonable regulation and control on the part of the gov- 
ernment, as would insure equity and a square deal to 
the masses of the people. 

He informed me that in the past the special inter- 
ests on every occasion, had been able to protect them- 
selves, and would be in the future against any political 
movement that might originate ; and that they would 
make no concessions. That any political movement 
however formidable, could not interfere with their 
property rights, and that the corporate interests within 
the United States, amounted to over $30,000,000,000; 
and if necessary for self protection they could paralyze 
the industries of the country in a day, and bring such 
disaster and pressure to bear upon congress, and the 
executive department of government that, it would 
overcome any influence exerted by any political up- 
heaval ; and in addition thereto he stated, that the con- 
stitution and laws of the land and the decision of the 
court, were all in their favor. 

I called to mind, as we were discussing this ques- 
tion, that he was using the same argument that was 



74 PROGRESSIVE GOVERNMENT 

used by the slave owners prior to the war of the rebel- 
lion. At that time, there was an abolition party, 
backed by a secret organization, that believed in the 
emancipation of the slaves; but the constitution and 
the laws of the land at that time, were all in favor of 
chattel slavery. 

Judge Taney, of the Federal Court, in what is 
known as the Dred-Scott decision said in 1857 : That 
a slave was property, and the slave owner could take 
his property into any state or territory of the Federal 
Union, and the laws of the country were bound to pro- 
tect him in the possession of his property rights. 

The language used by the court, was clear and ex- 
plicit, that the negro was property under the consti- 
tution and laws of the United States, and that the slave 
owner had a vested interest in his slaves, and that the 
constitution and laws recognized this property right, 
and that no political upheaval could interfere with it, 
and that the value of the slaves, amounted to one-fourth 
of the entire value of all the personal and real property 
of the United States, and that it was too big a proposi- 
tion for the government to handle, and it could not pur- 
chase the slaves, for it could not raise the necessary 
money to do so, even if the government should determ- 
ine upon such a policy; and besides the slave owner 
would not sell, and there was no law that could compel 
him to part with his property rights ; that these rights 
were sacred and guaranteed by the constitution and 
laws of the nation, and would be upheld by the courts 
against all political movements. 

But a political storm was gathering, the force of 
which no one foresaw, and the slave owner rested his 
cause on his property rights in the slave and refused to 
make concessions, and thereby invited the political up- 
heaval, and it came; and with it was scattered the 
rights of property, so far as the slave was concerned, 
and the constitutional guarantees and decrees of the 



BY GEORGE CAMPBELL 75 

court were lost sight of, and the slave was freed, and 
the $6,000,000,000 invested in chattel slavery was con- 
fiscated, and was a total loss to the slave owners. Now 
the question suggests itself will the vested interests 
take warning and learn a lesson from the history of the 
past and bear in mind, that all property rights, indi- 
vidual or corporate, rests upon the law, constitutional 
and otherwise, and by repealing the law, property 
rights, so far as individuals or corporations are con- 
cerned, are at an end. 

It will be remembered that in 1880, there were 
many millions of dollars invested in distilleries and 
breweries in Kansas, and the liquor interests were 
largely dominating the affairs of the state, and were 
accused of even corrupting elections. The people arose 
in their power, and asserted the right of revolution, 
and voted for prohibition, and the destruction of the 
distilling and brewing interests ; and the vested rights 
of these interests disappeared, and the property that 
remained in the state was confiscated and destroyed by 
the state, and in addition to the destruction of these 
distilleries and breweries, the State of Kansas has 
probably seized and confiscated $10,000,000 worth of 
intoxicating liquors since 1880, and has never paid 
one dollar for the property destroyed. 

The special interests should bear in mind that the 
paramount title to all property vests in the govern- 
ment, local, state and national ; and the property rights 
of the individual is only recognized by constitutional 
guarantees, statute laws and court decisions under cer- 
tain conditions, and if those conditions are not complied 
with by the individual or corporation, the government 
asserts its right of ownership and takes the property 
and sells it, or otherwise disposes of it to satisfy the 
demands of the government. 

The title to your land was primarily received from 
the government, and the individuals or corporations 



76 PROGRESvSIVE GOVERNMENT 

are given the right to occupy this land, to the exclusion 
of all others, so long as the occupant pays the taxes 
and observes the law. If however, he does not pay the 
taxes, the government sells the land, and will deed it 
to the tax purchaser, and the law will put the purchaser 
in possession of the premises. Now, if the government 
did not have a superior title to that of the individual, it 
could not deed away the land, and put the occupant out 
of possession and the purchaser in possession ; and all 
the property rights of the individual or corporation 
rests upon law, and a corporation can only hold its 
property by paying the taxes, and complying with the 
law, and a repeal of the law that gives title to the prop- 
erty destroys individual and corporate ownership, and 
vests the title to all property in the government, local, 
state and national ; and the government would not have 
to pay a single dollar for the property taken. It would 
be confiscated the same as the slave property, and the 
distilling and brewing interests in the State of Kansas. 

It is right and proper for the people to study these 
questions so they can intelligently act, in case a time 
comes for action ; for it remains for the people to de- 
termine what the policies of the government shall be 
with reference to all property rights ; and the masses 
of the people should be educated on political lines as 
well as business lines, that the future policies of the 
nation may be determined by an educated ballot, in the 
hands of honest, intelligent citizens, who will use it 
for the benefit of the whole people instead of a class. 

The socialist party backed by a secret society, at 
the present time, occupies about the same position in 
the approaching political upheaval, as that of the abo- 
lition party backed by a secret society in the forepart 
of the fifties. The membership of the abolition party 
were radical, and knew what they wanted, but did not 
understand how to organize and develop a • political 
party sufficiently strong to accomplish their purpose; 
but at this time, a division occurred in the Whig and 



BY GEORGE CAMPBELL 77 

Democratic parties, and there was developed a radical 
progressive element in both these parties against 
slavery, and while these progressives did not go as far 
as did the abolition party, and were content in declar- 
ing "that slavery was a state institution and not a na- 
tional policy, and that slavery should not exist within 
the territories of the United States, but that when a 
territory had made sufficient progress to be admitted 
as a state into the Federal Union, while it must be ad- 
mitted as a free state, that after its admission, it could 
then by a vote of the people establish slavery as a state 
institution" and upon this platform, they asked the 
support of the people. 

The Republican party which was the name assumed 
by the new progressive movement in the early fifties, 
knew how to organize and carry the country, but did 
not have a clear idea of its political principles, and the 
abolition party became the educator in the new move- 
ment, and a powerful political organization resulted, 
and in the political upheaval that followed, the aboli- 
tion party got all it asked, but the work was accom- 
plished by means of the new political organization 
under Republican leadership. 

In the present approaching contest, between capital 
and labor, unless wisdom is used, history will repeat 
itself. The socialist party knows what it wants. It 
declares "In favor of government ownership and con- 
trol of all the means of production and distribution," 
and this statement is unequivocal and clean cut and 
leaves no doubt as to what the socialist party wants, 
but the socialist party does not seem able to organize 
an effective political party, with sufficient strength to 
accomplish its purposes, and now comes a breach in 
the Republican and Democratic parties, and the forma- 
tion of a strong, progressive element in each of these 
parties, which is developing into a political movement, 
as demonstrated in the results of the last election : and 



78 PROGRESSIVE GOVERNMENT 

they seem to know how to build up a political organi- 
zation, that will sweep the country perhaps in 1912, 
but not later than 1916 at the furthest; and while the 
political principles of the progressive party are not 
well defined, they know there is something wrong, and 
they want to remedy the evil, but have not fully determ- 
ined just what the evil consists of, or the remedy to be 
applied, and the socialist party to some extent, like the 
abolition party, is becoming the educator in the new 
progressive movement, but it remains to be seen how 
far the progressives will go on these lines. 

It is no argument against socialist movement to say 
it is impracticable, and that the vested property rights 
of the special interests are so great, that the govern- 
ment could not purchase them, and therefore, these 
interests are safe, for the history of the world shows 
that in great political upheavals, the property rights of 
the interests affected, are never purchased by a govern- 
ment, but are confiscated and this fact of history should 
be looked squarely in the face, in dealing with the social 
movement, which now confronts the people. 

Socialism has been tried, as a government policy 
at different periods in the world's history, and while 
we shall not attempt to enumerate them, it is but fair 
to say that in some instances, it has met with a measure 
of success, but has generally proven defective in this: 
that there is a tendency to make the people indolent in 
proportion as it destroys individualism, yet, if corpora- 
tions persist in the organization of trusts, and domi- 
nating the affairs of the people, to the extent that now 
seems probable, the masses of the people may even- 
tually accept socialism as a means to rid themselves 
of the oppression of the trusts, if no other remedy is 
offered, which in the judgment of the people, is pre- 
ferable to that offered by the socialist party. 

It seems a little strange, that nowithstanding the 
unrest of the people, and their complaint against the 



BY GEORGE CAMPBELL 79 

corporations and trusts, that capital continues to form 
combinations at a rapid rate, as though they were in 
fact, getting ready to turn over these properties to the 
government under a socialistic system. 

These great corporate interests are daily combining 
and using the merger for this purpose, and the manage- 
ment of our industries is being placed under a single 
head, and if the policy is not checked or abated, the 
people may come to the conclusion, that if competition 
is to be wholly eliminated, and the industries managed 
by a single head, that, that head shall be the govern- 
ment, and that our industrial plants shall be owned and 
operated by the government in the interests of the 
whole people. 

If the owners of these large property interests do 
not want this policy to prevail, it would be well for them 
to study conditions, and make concessions before it is 
too late. If the people were sufficiently advanced upon 
educational lines, and the canons of the decalogue and 
Golden Rule, the government might go forward on so- 
cialistic lines and be a success, but in order to insure 
success, under socialistic rule, the people must be edu- 
cated and of a high moral type, in a degree that will 
eliminate graft and oppression. 

The colonists, when they first came to America, 
had everything in common, and their government was 
purely socialistic, and each person was compelled to do 
a certain amount of labor in raising supplies for the 
people, and these supplies were stored in a house that 
belonged to the colonists, and provisions were drawn 
therefrom, as the needs of the people demanded; but 
there was a lack of energy among the colonists and each 
one seemed to be afraid that he would do more than his 
share of the work, and under this system, the colonists 
never .produced enough food to supply their needs, and 
when they could not get supplies from the mother coun- 
try, or from the Indians to tide them over, they starved 



80 PROGRESSIVE GOVERNMENT 

and many perished from hunger, and in a few instances 
the whole colony died from famine. 

But when Captain John Smith took charge of the 
colonists, he saw what was necessary to make them 
prosperous and self-sustaining and he divided the land 
in severalty, and gave each man a title to a homestead, 
and gave him to understand that if he raised more food 
than was necessary to supply him and his family, that 
the colonial government would buy the surplus, and pay 
for it, and that he could thus become prosperous and 
contented. 

After this policy was adopted, there was no more 
want among the colonists. There was always a surplus 
of food products which was sold to the Indian and 
mother country, and the greatest prosperity prevailed 
among them, and private ownership proved to be the 
solution of the colonial problem, and their growth, per- 
manency and prosperity dates from the abolition of 
socialism among them. 

The American Indians also serve as an example of 
socialism. The tribes have held their property in com- 
mon all the way down the centuries and have made little 
or no progress during all this period of time, and the 
saying had become proverbial that the ''Indian would 
not work" ; but now where the government has done 
away with the tribal relations, and divided the property 
among the members of the tribes, the Indians are be- 
coming good workers and are conducting farms and 
raising stock; and their individual efforts are stimu- 
lated under the incentive of private ownership, until 
they now rival their white brothers in farming; and 
many of them surpass in this respect the average of 
the white race. 



BY CxEORGE CAMPBELL 81 



IF SOCIALISM IS NOT THE REMEDY FOR 
THE ILLS THAT AFFLICT THE PEOPLE, WHAT 
IS THE REMEDY AND HOW IS IT TO BE 
APPLIED? 



The remedy is undoubtedly government supervision 
and control of the industries on such conservative lines 
as will insure equal and exact justice to all, and such 
action requires a study of business conditions on the 
lines herein suggested and when the cause is discovered 
the remedy is apparent and must be applied by the gov- 
ernment in the interest of all the people and the gov- 
ernment to that extent must be paternal or socialistic 
to the degree necessary in preserving equal and exact 
justice to all the people. 

All governments are more or less paternal; they 
are paternal in preserving order, and must become 
more paternal or loco-parentis, in controlling the trusts 
and combines and protecting the right of the masses 
against the classes, and it is the only adequate power 
that can deal successfully with present conditions. 

An intelligent parent with a large family of girls 
and boys, will encourage each to put forth his or her 
best efforts to achieve the greatest success in life; he 
will not hold them back but encourage them to go for- 
ward and assist them in so doing, and while each will 
accumulate individual property by reason of such en- 
couragement and assistance, each will have a share in 
the patrimony or property of the parent at the same 
time, and there is no good reason why an individual 
should not possess individual property and at the same 
time, have his interest in all government property and 
to this extent, a government should be paternal. 



82 PROGRESSIVE GOVERNMENT 

A parent will be zealous for the welfare of each 
of his children, and see that one does not take advan- 
tage of the other, and that combinations are not formed 
by some of the household to operate against the inter- 
ests of the other members, but will see that absolute 
justice prevails among them, and that each is secure 
in what he honestly acquires, as the fruits of his in- 
dividual efforts; and should not the government be 
equally zealous to protect the rights of its subjects, 
and see that combinations are not formed in the inter- 
ests of the few to operate against the rights of the 
many and that the government should not donate the 
property of the people to trusts and combines and thus 
assist corporations in building up giant trusts that op- 
press the masses and in some instances, exercise a tax- 
ing power over the people that a government would 
hardly dare to exercise. Would a prudent parent per- 
mit such a policy to obtain in his household? 

Suppose a parent has a large farm and numerous 
children, and as they reach man's estate, they marry 
and establish homes, and the parent sets apart to each 
family a homestead of equal value. 

The homestead set apart to John, is found to con- 
tain gas, coal and oil in vast quantities, and John sets 
about to develop these properties and sell the products 
to the other members of the family, and wants to sell 
at a large profit in fact, "what the traffic will bear." 

The parent now appears upon the scene and notifies 
John that in his title deed, there was transferred to 
him the surface of the land for a homestead and that 
his deed did not include the minerals underneath the 
surface of the earth ; that these are a part of the patri- 
mony and belong equally to all the children, and that 
John cannot appropriate them to his exclusive use and 
benefit. That John will not be permitted to acquire 
ownership of these natural properties, but in drilling 
wells for oil and gas, and piping the same, and in min- 



BY GEORGE CAMPBKIJ, 83 

ing the coal, requires an investment of money, and that 
John would be entitled to a reasonable per cent upon 
his investment in case he develops these properties, 
which must be under the supervision of the parent, and 
that he could charge for the gas, coal and oil a sufficient 
sum to meet, first operating expenses of the plant, in- 
cluding repairs, and second, interest upon his invest- 
ment, say ten per cent per annum, and that if John 
wanted to develop these properties under these con- 
ditions he can do so, otherwise, the parent will develop 
them for the benefit of all the children. Would there 
be anything wrong in such a policy, and should not the 
government loco-parentis do the same with reference 
to the coal, gas, oil and other minerals of the United 
States. These are natural properties, and all the peo- 
ple should have an interest, and private ownership 
should not be recognized, and the reader will observe 
in the reading of the gas case set forth as an appendix 
to this booklet, that the court seems to take about the 
same view of this question. 

It is right for the government loco-parentis to pre- 
serve all property interests of the people, collective 
and otherwise, and conserve the power sites, coal 
and all other collective property interests for the 
benefit of the whole people, and while it is right 
and proper, we should preserve the Alaskan coal and 
keep it from falling into the hands of syndicates, we 
should not forget the coal lands, that are located within 
the United States, that are now owned by syndicates, 
the government should ascertain how the titles to these 
lands have been acquired, and if by fraud, action should 
be brought to set aside the pretended titles. 

It is stated in the Wall Street Journal, that the 
Morgan-Guggenheim syndicate controls seventy-four 
per cent of the coal lands of the United States, and 
while there are improved methods in mining coal, 
which greatly cheapens the output of the mines not- 



84 PROGRESSIVE GOVERNMENT 

withstanding the fact that labor has forced an increase 
in wages, yet, the price of coal to the consumer has been 
greatly advanced, and coal is now used as one of the 
means to force factories into the merger, and if the 
factory objects to joining the merger, the price of fuel 
is raised so high that it is impossible for the factory to 
operate its business, and the only alternative is to join 
the merger. 

The question suggests itself, how did this syndi- 
cate get control of these coal mines, but the answer is 
apparent, for the greater part of these coal mines were 
gotten through land grants to railways and procured 
by fraud, and it is a well settled principle of the law, 
that fraud viciates all contracts and makes voidable 
all sales, and would it not be proper for the govern- 
ment to investigate the methods by which these coal 
lands were acquired, and if acquired by fraud, insti- 
tute the proper proceedings to set aside the title. 
Would not a prudent parent do this, in matters be- 
tween the members of his own household, and should 
not the government act on similar lines, as a matter of 
justice to the people? 

The government at present is building the Panama 
canal and is demonstrating what the government can 
do in a great business enterprise, and is pushing the 
work with great vigor ; and the methods employed and 
results achieved, is a surprise to all the nations of the 
world, as it is doing sucessfully what the greatest cor- 
poration could not do, in digging this interoceanic 
canal. 

The greatest opposition, heretofore offered against 
government operation and control of great industrial 
enterprises, is that the government is slow to act; but 
this objection is now overcome by the push and energy 
manifested by the government in digging this water- 
way, and it is now conceded that there is no good rea- 
son why the government should not act as promptly as 



BY GEORGE CAMPBELL 85 

private corporations, and it has demonstrated its power 
in this instance to act, even more promptly and effi- 
ciently in the construction of this enterprise than pri- 
vate corporations have ever done. 

The government should now act on the Alaskan 
coal proposition, and see that this coal is mined for 
the use of the people in Alaskan cities, and for the 
coaling of vessels on the Alaskan coast. There is no 
good reason why the people in Alaska should be com- 
pelled to buy coal at an enormous price of British 
Columbia, while the Alaskan field containing better 
coal and a thousand times more extensive should lie 
undeveloped awaiting the action of congress and the 
interior department of government. Let the govern- 
ment now demonstrate what it can do in handling this 
Alaskan coal proposition, and if its efforts are success- 
ful, and there is no reason why they should not be 
the people of the United States will have an income 
from these coal fields in royalties, that will soon pay 
the running expenses of the government, or these re- 
ceipts could be used in developing other enterprises, 
that badly need government attention. 

The digging of the Panama canal has given the 
people a lesson in paternalism, that should not be lost 
sight of. There are 35,000 men at work on the Panama 
canal, and each man is apparently a cog in the great 
industrial wheel, which is constructing this great inter- 
national waterway. 

The President of the United States recently visited 
the Panama canal zone in company with several other 
persons among whom was Mr. Authier, who in writing 
the account of this wonderful waterway has the fol- 
lowing to say about paternalism. His article was pub- 
lished in the Review of Reviews of January, 1911. 
He says: 

"The result of the organization is the most com- 
plete example of paternalism in government ever 



86 PROGRESSIVE GOVERNMENT 

known in the history of the world; men are 
housed, fed and cared for by the government, 
which also looks after their personal, physical, 
educational and religious needs. It supplies the 
schools and pays the salaries of ministers of the 
gospel, and of the entire organization, Colonel 
Goethal is the head and absolute chief, within rea- 
sonable limitation of law. Each man is a cog in 
this wonderfully smooth working machinery 
which is digging the canal and solving the prob- 
lem of an international waterway, that has been 
the dream of the centuries. 

"The victory which sanitation has gained over 
the pestilent conditions of a tropical country, has 
made it possible to solve the canal problem. Today 
the isthmus is as healthy a place as can be found 
anywhere in the tropics. A trip over the canal 
zone will show pipe lines running in every direc- 
tion and these carry oil designed to eliminate the 
disease spreading mosquito, and yellow fever is 
now unknown on the isthmus. 

"The 35,000 laborers employed on this canal in 
addition to drawing a much higher salary, than 
he could obtain in the United States, the Panama 
employe finds his lines cast in pleasant places. 
The government looks upon him as a ward. He is 
provided with quarters, a modern house, in case 
of a married man, and his house is furnished, he 
receives free medical attendance and medicine, 
free fuel, free water and free lights and ice is 
delivered at his door at cost, and he has free hos- 
pital service. 

"He is eligible to membership in any of the 
social clubs, the government furnishing the club 
house with bowling alley, pool and billiard tables ; 
superintendent and Stewarts for which he pays 
$10 a year; the money being used by the club for 
the purchase of books, magazines and other ap- 
purtenances. If he belongs to church, he finds 
a church furnished and a preacher employed. He 
has free books, free schools and free school sup- 
plies, and his children are taken to school and re- 
turned to their homes in government conveyances ; 
and if they attend high school, they are given 



BY GEORGE CAMPBELL 87 

monthly trip passes over the Panama railway to 
the high school at Ancon and Gutum. 

"Through the commissary department, the high 
cost of living is elimiated. The American em- 
ployed upon the isthmus eats beefsteak of a finer 
quality than is usually obtained at home, and at 
much less cost. The commissary department un- 
der the management of Major Wilson runs special 
trains across the canal zone each day carrying 
fresh vegetables, fresh meats, fresh eggs, etc., and 
at a lower price than would have to be paid in 
New York or Chicago." 

If the government can so thoroughly care for its 
subjects in the Panama zone and eliminate the high 
cost of living, should it not be equally zealous in pro- 
tecting the people of the United States at home, against 
the combination that corners the food and other sup- 
plies necessary for the very esistence of the people; 
charging them exorbitant prices that cannot be justi- 
fied on any grounds except "That might makes right." 
Something surely ought to be done along these lines, 
and whether this be called paternalism or socialism, it 
does not matter, but action should be prompt and ef- 
ficient on the part of the government to protect the 
people from these extortions. 

The government is now taking the initiative to pro- 
tect the people against these abuses, and should be 
assisted in every way possible by the masses of the 
people, in obtaining evidence and in sustaining the 
officers that are waging this contest for the benefit of 
the people. This legal conflict will not be settled in a 
day, for every stumbling block that money can pro- 
cure and the best legal minds can devise, will be 
thrown in the way of the prosecutor to impede his 
progress in the prosecution of these cases; and the 
special interests class will seek to divide the people and 
cause them to think that the officers are not doing 
their duty or have sold out to the special interests, and 
the public press will be used to impart by insinuation 



88 PROGRESSIVE GOVERNMENT 



this information to the people, for "divide and con- 
quer" has been the policy of the corporate interests for 
many years. 

The people have had sufficient experience however, 
along these lines, so they ought not to be deceived in 
the future; for it is a part of the stock in trade of 
the special interests to make it appear to the general 
public through the press and otherwise, that the prose- 
cutor is incompetent or dishonest, or both, and is not 
properly representing the interests of the people. 

When we hear such reports about the men that are 
fighting our battles, we may safely draw the inference 
that these officers are honest and competent and are 
doing their duty in prosecuting these cases without 
fear or favor; for, if the special interests could use 
them, then there would be nothing but praise for their 
ability and efficiency, in the prosecution of these cases ; 
and the people must learn to sustain those that cham- 
pion their cause, no matter to what political party they 
belong. 

Another matter that should be borne in mind by 
the voter is election day. That is the one day in all the 
year, he can greatly benefit his cause, and the voter 
should not be scared into voting for candidates nor 
policies that are against his interests by threats of 
closing down the factory or reducing wages. Let him 
study all public questions thoroughly and master them 
if possible, and then go to the polls on election day and 
vote his honest sentiment without fear or favor; and 
he should always bear in mind in reaching his con- 
clusion as to how he should vote, that the special inter- 
ests want his labor as cheaply as possible, while it is 
to his interest to receive the full value for his services, 
'and hence, his interests are opposite to that of his em- 
ployer, and it is well for him to thoroughly investigate 
before voting the same ticket as that of his employer. 

Some of the large employers of labor are adopting 



BY GEORGE CAMPBELL 89 

a pension system, in order to control the votes of their 
employes; but this should make no difference in the 
casting of the ballot, for labor pays the pension all the 
same, and the object to be attained in granting the pen- 
sion is easily understood. 

The government should however, adopt a pension 
system for all old dependent persons, or those that 
have become disabled by reason of accident, in any 
branch of our great industrial system. The person 
who labors and meets with an accident, that wholly or 
partially disables him or her from service, or who by 
reason of age is unable to work, should be properly 
pensioned by the government, to provide the unfor- 
tunate against want, and the government certainly 
owes this consideration to its subjects and it is cheaper 
in the long run to pension the poor, than to provide 
poor houses and it is not so humiliating and does not 
have the deteriorating effect upon the subject that is 
experienced in sending him or her to the poor house. 

Germany, England and several other progressive 
nations have adopted the pension system for the poor, 
and it has proven highly satisfactory, and neither of 
these nations would abolish the system. 

If after reading this booklet, you should come to 
the conclusion that something ought to be done on the 
lines herein suggested, get the people together in your 
precinct and form a "Progressive Government Club" 
where the people can meet and discuss public questions 
and get ready for the campaign in 1912. 

What the American people need is enlightenment 
on these public questions, and they are ready to act, 
and this enlightenment will come as the result of a fair, 
free, intelligent discussion of the issues involved. 

It does not matter if the speaker is radical, hear 
him. He may express some ideas that will enlighten 
the general public and he can do no harm, for the 
American people can be depended upon, when they 



90 PROGRESSIVE GOVERNMENT 

understand a proposition, to reject such portions as are 
not conducive to the good of society, and adopt what 
in their judgment will be to the best interests of the 
people, hence, the danger lies not in radicalism but in 
the carelessness of the voter in not being informed 
upon public questions, and from lack of knowledge, 
cast his ballot in a manner contrary to his interests. 

It is the aim of the progressives to put at least one 
booklet in each voting precinct throughout the United 
States, and if the recipient of the book will see to it, 
that a progressive club is formed in his precinct, and 
maintained until after the election of 1912, he will 
thereby discharge a great duty to the people that will 
stand to his credit in the coming years, and relief will 
come to the country largely by these means, and the 
rights of the natural man will be recognized at least 
to the same extent as those of corporations, and these 
progressive government clubs will be the kindergar- 
tens for the promulgation of governmental policies, so 
framed as to make government a business proposition, 
and at the same time, preserve the liberties of the 
people and restore that strong independent American 
manhood and womanhood, that is gradually being 
crushed out, through the action of the trusts. 

The people must learn that government either as 
a city, a county, a state or nation, is under the present 
industrial system, a business proposition and must be 
handled as such, and the laws must be changed to 
meet present conditions. 

The commission form of government for cities, 
while it is imperfect, is a step in the right direction, 
and will eventually make the city a great business in- 
stitution, supplying the people of the city with the 
things necessary to their existence, and at a fraction 
of the cost now charged by public service corporations. 

If the cities so desire, they can set a price on the 
necessaries furnished by the cities to their inhabitants, 



BY GEORGE CAMPBELL 91 

that will net the city a margin, and then the price will 
be much less than prices charged by corporations or 
individuals for the same service, and the profits thus 
accruing, can be apportioned among the consumers of 
the city in the nature of dividends, and this will make 
all the citizens interested in the business of the city, 
as they will want the dividends earned from the busi- 
ness, and similar changes must be made in the law to 
apply to counties, states and to the nation, and the 
details must be worked out, and the Progressive Gov- 
ernment Clubs will prove of great assistance to the 
people in the solution- of these problems of government. 

"In the multitude of counselors, there is wisdom." 
and by a free, fair discussion of all public questions, 
there will be developed a class of statesmen, competent, 
honest and fearless in the discharge of their duty, and 
the year 1912 will mark an epoch in American history, 
when the people took control of their government and 
restored to the natural man his rights to live upon the 
earth, without paying a corporation for the privilege. 

It is not the intention of the author that the pro- 
pressive government clubs should adopt the ideas con- 
tained in this book in order to organize, but the sug- 
gestions here offered are intended only as guide merid- 
ians to direct the attention of the voter to certain 
abuses in government, and point out the remedies for 
the correction of these abuses, and all discussions 
should take the broadest possible range in order to 
develop the facts in issue; but the first aim of the 
progressive movement should be to "save the county" 
and leave the details to be worked out later. 

Every person, whether he be known as a Repub- 
lican or Democrat, elected to office, should be a Pro- 
gressive, and the membership of this movement should 
see to it, that only progressives are sent to national 
conventions in 1912 to nominate the presidential candi- 
dates of both Republican and Democratic parties, and 



92 PROGRESSIVE GOVERNMENT 

if the stand patters should succeed in controlling both 
these conventions, then it would be well for the Pro- 
gressives to call a conference and ascertain the senti- 
ment of the membership, with reference to placing a 
presidential candidate in the field. 

In this hour of uncertainty, when the stability of 
Republican institutions of government are threatened 
by the powers of aggregated wealth, the words of 
Washington seem appropriate. Washington had in his 
army many foreigners, who seemed as patriotic to the 
American cause as did the colonists, but in the memo- 
rable retreat of Washington from Valley Forge, when 
the colonial cause seemed dark and foreboding and 
clothed in the greatest uncertainty; Washington gave 
the command: "Put none but Americans en guard to- 
night." The order was obeyed and the world knows 
the result, and the republic lives as a monument to his 
wisdom and patriotism. 

The Progressives, in governmental affairs are now 
engaged in a great political contest to preserve those 
principles of government for which Washington con- 
tended, and the conflict is waged against the powers 
of aggregated wealth, and will determine whether 
preditory wealth or American manhood is to rule the 
nation ; and the issue is f rought with uncertainty, for 
all history attests the fact that every republic down 
through the centuries, have been destroyed by predi- 
tory wealth, in concentrating the w T ealth of the nation 
in few hands and starving into submission the man- 
hood and womanhood of these republics. 

The question suggests itself, will the history of the 
great American republic, be the same as that of Greece, 
Rome and other republics, that have preceded it upon 
the world's drama, and this will depend upon Ameri- 
can manhood and womanhood. If they organize and 
educate themselves on all public questions, they can 
prevent the catastrophe that has wrecked all the re- 



BY GEORGE CAMPBELL 93 

publics of the past. Will they do it? The demands of 
the hour is for intelligent, honest and fearless officials 
in the discharge of public duty, just what the progres- 
sives have thus far proven themselves to be, and these 
offices should be backed by a strong organized con- 
stituency, composed of the same sturdy material, and 
let the order go down the line "Put none but Progres- 
sives on guard tonight," and the old ship of state will 
come safe to anchor and the natural rights of men to 
life, liberty and pursuit of hapiness, will be preserved. 



IMPORTANT 



Since writing the foregoing pamphlet, the Asso- 
ciated Press dispatches contain the information that 
the bank merger is placing organizers in the field in 
all the reserved cities to organize citizens leagues to 
force legislation through the next congress on the cur- 
rency question, giving to the associated banks, the full 
pcwer to issue and control the currency of the United 
States and providing for the retiring of the 346,000,000 
legal tender treasury notes, and active work is being 
done in New York, Chicago, St. Louis and all other 
reserved cities, and it is time for the people to act, if 
they are to retain their independence. 

The banking trust is the most formidable of all 
trusts and with the absolute control of the money, they 
can in a few years, own all the property of the United 
States. No factory can be operated without money. 
It must buy the raw material and employ labor for 
which it must pay money. If the banks will not furnish 
the money to operate the plant, it must close down and 
the ownership pass into the hands of the banking 



94 PROGRESSIVE GOVERNMENT 

trust, and so with the railways and all the other indus- 
tries. 

Think of it. All taxes are payable in money, and 
if the banks get complete control of the money and 
refuse to make loans, the property of the people will 
be sold for taxes and the banks will buy it in, as they 
alone will have the money to enable them to do so. 
Pliney tells us that when the banks of the Roman Em- 
pire had gotten complete control over the money, that 
they formed a merger and refused to make loans and 
withdrew the money from circulation and the people 
could not pay their taxes and that the property of one 
province after another, equalling in area some of the 
largest states of the Federal Union, were bid off by 
the banks, and that less than three per cent of the peo- 
ple, as represented by the bank merger, owned 97 
per cent of all the property of the Roman Empire ; and 
the old Roman spirit that had conquered the world, 
died within them, and the people became serfs and 
were afterward bought and sold with the land. 

Is history to repeat itself in the decline of this re- 
public and is American liberty to be crushed out by the 
money merger now in process of formation, and on 
which legislation is to be forced during the session of 
the next congress. The banks will succeed unless the 
people organize to protect their interests and banking 
by the government in the interest of the people as out- 
lined in this pamphlet, can alone preserve the liberties 
of the people ; and if adopted will inaugurate and main- 
tain a business prosperity throughout the land never 
before experienced in the history of the nation. 

The people should see to it that progressive govern- 
ment clubs are organized in every voting precinct, and 
all other questions should be held in abeyance, and the 
money question alone taken up and kept before the 
people until it is settled, as the banks are forcing this 
question upon congress, and a delay upon the part of 



BY GRORGK CAMPBELL 95 

the people in organizing and educating themselves to 
meet this issue, means the success on the part of the 
banks and the ultimate destruction of the independence 
of the people and their subjugation to the money 
trusts, the same as it was in Greece, Rome and Egypt. 

There are many things embodied in this pamphlet, 
that will seem visionary to those that have never studied 
these questions, for anything we do not understand 
seems more or less visionary to the average citizen. 
When Joseph Ross, about forty-seven years ago, said 
that within fifty years electricity would be used to 
carry the human voice to distant parts of the country 
and that people would be able to talk to each other, 
hundreds of miles apart and recognize the voice of 
those talking, he was called visionary and was dis- 
charged from the telegraph office where he was em- 
ployed, but nevertheless, the telephone is here and Ross 
is vindicated although he lost his job because he had 
ideas in advance of the period at which he lived. For- 
tunately, the people have became more liberal, and 
they are not so apt to consider an idea visionary be- 
cause they do not understand it, as they did a genera- 
tion ago ; but if the facts in this pamphlet are not in 
accordance with their ideas, by discussion, they will 
evolve the truth, but for the present, the people should 
unite upon the one question that is being forced upon 
Congress with reference to our currency and should 
hold all others in abeyance ; for the welfare of the coun- 
try and the liberties of the people is involved in this 
issue. 



President Taft in his address of June 21, 1911, be- 
fore the State Bankers' Association of New York, 
fully endorsed the plans of the monetary commission 
of which Senator Aldrich is chairman. 

Mr. Taft, as reported in the press, said : 

"There is no legislation, I care not what it is, 



96 PROGRESSIVE GOVERNMENT 

tariff, railroad, corporation, or of a general pol- 
itical character, that at all equals in importance 
the putting of our currency system on a sound 
basis, as proposed in the national monetary com- 
mission plan. 

"In all well regulated banking and currency 
systems of the old world, the power to control 
cash reserves and the issue of bank notes to be 
used as currency, is placed under the control of a 
central bank, recognized by the government and 
given the necessary authority. 

"A monetary commission was appointed, of 
which Senator Aldrich was made chairman, and 
it is a non-partisan commission, and I dwell with 
great emphasis upon this fact, for our hope lies 
in getting support from both political parties. 

"The system may be roughly described, as an 
association of seven thousand national banks, or- 
ganized on a representative basis, to include the 
entire country, with a great central bank at its 
head to issue all circulating notes." 

President Taft, has thus given a brief of the bank- 
ing plan in as few words as possible, and we might say, 
the plan is correctly stated; and if we will make a 
careful study of the plan, we will observe that it is a 
revival of the old United States Bank in an aggravated 
form ; for the charter of the old United States Bank 
that Jackson vetoed, called for one central bank with 
twenty-five branches ; while the Aldrich plan calls for 
a central bank with seven thousand branches, to in- 
clude all national banks, and cover every portion of 
the territory of the United States ; and these banks 
will not only receive their circulating notes from the 
central bank, but also orders which will be obeyed by 
the seven thousand branches, scattered throughout the 
length and breadth of the land. 

Perhaps it will be well for us to briefly examine 
some of the charges against the old United States 
Bank, that caused Jackson to veto the re-chartering 
of that institution, and these may prove a guide to us, 



BY GEORCxE CAMPBELL v )7 

and influence our action in the consideration of the 
Aldrich plan. 

Thomas H. Benton in his thirty years in Congress, 
shows that the old United States Bank spent over 
three million dollars in subsidizing the press, politi- 
cians and men of influence to support the bank 
measure when it was up before Congress for the re- 
chartering of the bank ; and after the veto of the 
bank charter by President Jackson, it was claimed that 
Jackson had slain the bank, but Benton said : 

"Jackson has not slain the bank. The bank is 
a wounded tigress and has flown to the jungles, 
and at a time when ye think not, she will return 
and pounce upon the country, and she will bring 
her whelps with her," and we can certainly recog- 
nize the tigress with her whelps in the Aldrich 
bank plan. 

Honorable W. T. Kelly in a speech stated : 

"In Philadelphia, the bank would order the 
business men to hold public meetings in its behalf, 
in order that they might understand who were the 
friends of the bank ; and would appoint places for 
the assembling of different trades, in order that 
their employers might see who of their workmen 
had opinions in opposition to the bank." 

Mr. Berkley, in referring to the tJnited States 
bank, and the power it exerted over the people and 
the business of the country used the following lan- 
guage : 

"The bank is a colossal money power, its arm 
is in every state by means of its branches, and its 
power over the country bank and over the busi- 
ness of the country, and over public men who 
were its debtors and retainers, seemed to have 
been absolute; and with its organization under 
a single head, it issued its orders in secret to be 
obeyed in all places by all its subordinates at the 
same moment." 
President Jackson in Volume 3, of Messages and 
Papers of the President, on page 6, says : 



98 PROGRESSIVE GOVERNMENT 

"The bank increased its loans $28,025,766.48 in 
sixteen months, and it was confidently believed 
that the object of this immense extension of its 
loan, was to bring as large a portion of the people 
as possible under its power and influence, and it 
was disclosed that some of these largest sums 
were granted on very unusual terms to conductors 
of the public press. In some of these cases, the 
motives were made manifest by the nominal or 
insufficient security and by the large amount dis- 
counted, and by the extraordinary time allowed 
for payment, and especially by the subsequent 
conduct of those receiving these accommodations. 

"Having taken these preliminary steps to obtain 
control over public opinion, the bank came into 
Congress and asked a new charter. Many docu- 
ments and articles were printed and circulated at 
the expense of the bank, to bring the people to a 
favorable decision upon its pretenses. Those Whom 
the bank appears to have made its debtors, for the 
special occasion, were warned of the ruin which 
awaited them should the President be sustained; 
and attempts were made to alarm the Whole peo- 
ple, by painting the depression in prices of prop- 
erty and produce, and the loss, inconvenience and 
distress which it was representing, would im- 
mediately follow the re-election of the President, 
in opposition to the bank." 

President Jackson in speaking of the conduct of the 
bank, calls the attention of the people to the fact, that 
a bill was drawn by the United States against France, 
for a part of the indemnity due the United States on a 
claim against that nation ; but it was not thought for 
a moment, to enforce the payment of this claim by our 
government, as France had rendered the United States 
a great service during the Revolutionary war, when 
such services were needed, and this bill was placed, 
after being drawn by the United States, in the bank 
to be presented through the proper channels to the 
French government; and the United States govern- 
ment merely took credit in the bank for the amount of 
the bill, and no money was paid ; but the bank in viola- 



BY GEORGE CAMPBELL 99 

tion of the instructions of our government, sold this 
bill to England, the enemy of France, in order to annoy 
and embarrass the French government, that was un- 
prepared at that particular time to pay the bill, of 
which fact this government had knowledge; but 
through English channels this bill was protested, and 
came near involving the United States in a war with 
France; and on page 12 of the volume referred to, 
President Jackson says: 

"The allegations which have so often circulated 
through these channels (the bank) that the treas- 
ury was bankrupt, and that the bank was sustain- 
ing it, when for many years, there had not been 
less on an average, than six millions of public 
money in that institution, might be passed over as 
a harmless misrepresentation; but when it at- 
tempted by substantial acts to impair the credit of 
the government, and tarnish the honor of the 
country, such charges require more serious atten- 
tion. 

"With six millions of public money in its vaults, 
after having used from five to twelve millions for 
more than nine years without interest, it became 
the purchaser of a bill drawn by our government 
on that of France for about $900,000, being the 
first installment of the French indemnity. 

"The purchase money was left in the use of the 
bank, being simply added to the treasury deposit. 
The bank sold the bill in England and the holder 
sent it to France for collection, and arrangements 
not having been made by the French government 
for the payment, it was taken up by the agent 
of the bank in Paris, with the funds of the bank 
in his hands. Under these circumstances, it has 
through its organ, openly assailed the credit of 
the government and has actually made, and per- 
sists in a demand of fifteen per cent, or $158,- 
842.77 as damages on protest of this bill, when 
no damages or none beyond some trivial expense, 
has in fact been sustained; and when the bank 
had in its possession on deoosit several million 
dollars of public money, which it was then using 
for its own benefit. Is the fiscal agent of the gov- 



100 PROGRESSIVE GOVERNMENT 

ernment which thus seeks to enrich itself at the 
expense of the public worthy of further trust?" 

Again on pages 16 and 17 of the same volume, 
President Jackson, in referring to the bank says : 

"If, indeed, this corporation holds in its hands, 
the happiness and prosperity of the American peo- 
ple, it is time to take alarm. If the despotism be 
already upon us, and our only safety is in the 
mercy of the despot, recent developments in rela- 
tion to his design and the means he employs, show 
how necessary it is to shake it off. The struggle 
can never come with less distress to the people or 
under more favorable auspices than at the pres- 
ent moment." 

Volumes might be printed, with reference to the 
arrogance and insolence of the United States Bank, 
and its use of force in coercing the government of the 
United States and compelling it to keep hands off of 
the bank; but we will only give one more quotation, 
and this will be from President Jackson, and appears 
in Volume 3 at pages 108 and 109 of "Messages and 
Papers." The President says : 

"Circumstances make it my duty to call the at- 
tention of Congress to the bank of the United 
States. (Supposedly) created for the benefit and 
convenience of the government, that institution 
has become the scourge of the people. Its inter- 
ference to postpone the payment of a portion of 
the national debt, that it might retain the public 
money appropriated for that purpose, to strength- 
en it in its political contest, the extraordinary ex- 
tensions and contraction of its accommodation to 
communities, its corrupt and partisan loans, its 
exclusion of the public directors from a knowledge 
of its most important proceedings, the unlimited 
authority conferred upon the president of the 
bank to expend its funds in hiring writers and 
procuring the execution of printing and the use 
made of that authority; the retention of the pen- 
sion money and books, after the selection of new 
agents, the groundless claims to heavy damages 



BY GEORGE CAMPBELL 101 

in consequence of the protest of the bill drawn on 
the French government, have through various 
channels been laid before Congress. 

'To the needless distress brought on the country 
during the last session of Congress has since been 
added the open seizure of the dividends of the 
public stocks to the amount of $170,041.00, under 
the pretense of paying damages, costs and inter- 
est upon the protested French bill. This sum con- 
stituted a portion of the revenues of the govern- 
ment for 1834 upon which the appropriation made 
by Congress was based. It would as soon have 
expected that our collectors would seize on the 
customs, or the receivers of our land offices on the 
monies arising from the sale of public land, under 
the pretenses of claims against the United States, 
as that the bank would 'have retained these divi- 
dends. Indeed if the principal be established, that 
anyone who chooses, can set up a claim against 
the United States, and may without authority of 
law, seize on the public property or money where- 
ever he can find it, to pay such a claim ; there will 
remain no assurances that our revenue will reach 
the treasury, or, that it will be applied, after the 
appropriation, to the purposes designated in the 
law. The paymasters of our army and the pur- 
sers of our navy, may under like pretenses, apply 
to their own use money appropriated to set in mo- 
tion the public forces, and in time of war, leave 
the country without defenses. This measure re- 
sorted to by the bank, is disorganizing and revolu- 
tionary, and if generally resorted to by private 
citizens in like cases, would fill the land with 
anarchy and violence." 
Is it possible with this arraignment of the United 
States Bank, that the people will re-charter this insti- 
tution in an aggravated form, to prey upon the people 
and to "boss" the government as was the case with 
the United States Bank ; and we have only given a few 
of the many instances that might be cited, showing 
the arrogance of the bank, and its total disregard of 
the rights of the people and the laws of the United 
States, which it openly set at defiance on various 
occasions. 



102 PROGRESSIVE GOVERNMENT 

In the history of the past we find that nations have 
arisen, reached the zenith of their glory, and have 
fallen into decay, and we find, that the decline of all 
these nations, is due to one cause, the concentration of 
the property of the country in few hands, and in each 
instance under a similar banking system to that pro- 
posed by the Aldrich plan; and Egypt, Greece and 
Rome serve as examples of what happens when the peo- 
ple leave it to the so-called financiers, to make and en- 
force the financial policy of a great nation. 

Plinney tells us with reference to Rome, that when 
the banks refused to make loans to the people, and 
began to take over to themselves the property of the 
citizens, that 

'The people gave themselves up in despair in 
their fields, as beasts of burden lie down beneath 
their load and refuse to rise. The disintegration 
of society was almost complete. All public spirit, 
all generous emotions, all noble aspirations of men 
shriveled and disappeared, as the volume of money 
shrank, and prices fell. As men decayed, wealth 
accumulated in the hands of the few. Not only 
did whole provinces become the property of one 
man, but usury existed in so frightful a form that 
even the virtuous Brutus received sixty per cent 
for the use of money.' ' 

If the Aldrich plan of banking is adopted in 
America, the history of the decline of Rome will be 
the history of the decline of the American Republic; 
for money is governed by the same law, that governs 
all other commodities, and this law will apply in 
America the same as it did in Rome, and the other 
nations of the past. 

It has been observed, that if only a part of a crop 
of corn is harvested, the supply being lessened, and 
the demand remaining the same, the price of corn ad- 
vances as compared with all other commodities, and 
we say that corn is high ; and a unit of corn (the 
bushel) will buy more money or more of any other 



BY GEORGK CAMPBELL 103 

commodity than it would, if corn was plentiful and 
therefore, cheap; and the same law of exchange ap- 
plies to wheat and all other commodities including 
money; and this natural law applies to money, in a 
much greater degree, than to natural products of the 
soil. 

If corn is scarce, and therefore high in price, there 
is substituted for it, some other cereal, which lessens 
the demand, and the case is the same with all other 
natural products ; but not so with money. Money has 
no substitute, but on the other hand, it is a substitute 
for everything else. 

If I owe Jones one hundred bushels of wheat, and 
do not deliver it, he has a right of action against me, 
and goes into court and obtains judgment for the value 
of the wheat, and this judgment is payable in money; 
and the money thus becomes a substitute for the wheat, 
and so with all other products ; and even a person that 
has his character assailed, goes into court for vindica- 
tion, and the court and jury find that a certain number 
of dollars is an adequate compensation for the damage 
done to his character, and thus it so happens that money 
becomes a substitute for all things, but there is no real 
substitute for money ; and yet, it is proposed by the 
Aldrich plan to turn the issue and control of the cur- 
rency over to a central bank, with seven thousand 
branches, and this power is to be used in the interest 
of the bank, to further its own gain and advantage, as 
opposed to that of the people. 

Are the people of the United States ready to sur- 
render this attribute of sovereignty, to an irresponsible 
banking corporation to be used in its own interest? 
If so, the American Republic will perish by reason of 
the concentration of the property of the country in 
the hands of the bank, and a monarchy will arise in its 
stead, to protect the property interests, owned and 
controlled by the bank. This is the object of the law, 



104 PROCxRESSIVE GOVERNMENT 

and it was taken from the monarchies of the old world 
and is designed to subjugate America. 

If the Aldrich bill is enacted into a law, there is no 
place provided where the people can get money only 
from the bank, and if the bank refuses to loan, the 
people will have no money with which to pay debts 
and taxes, and their property will be thrown upon the 
market, to be bid off by the bank, for such sum as the 
bank sees fit to pay, and with the ownership of the 
property of the country, there will come a demand for 
a "strong government" for the protection of its prop- 
erty rights, and hence, the monarchy will be estab- 
lished — this is the history of the other republics, and 
must repeat itself in America, under like conditions. 

But perhaps some will say that the bank will not 
own all the money at one time; that the people will 
have large sums on deposit, that will not belong to the 
bank, and in case the bank should adopt the policy of 
not loaning their funds, the money on deposit would be 
subject to check; and suppose we admit this, and we 
will also say the same was true in 1907 at the time of 
the panic, but the bank did not allow the people to 
draw their money, and held it, and could it not do 
the same thing in the future? 

The banks as now organized have too great power, 
even in the absence of the Aldrich plan of banking; 
and they are now forming a bank merger to be operated 
from one single head, to affect the very purpose that is 
sought to be accomplished by the Aldrich plan, and the 
people should defeat it. Our banking system as it now 
exists, should be changed, and the national bank should 
be abolished, and there should be substituted govern- 
ment banking either direct or through municipalities 
similar to that of France. 

The government of France does its own banking, 
through the postoffice and through municipal banks 
operated under government supervision. I have a let- 



BY GEORGE CAMPBELL 105 

ter from a Counsel General, representing the French 
government, and he states that at each postoffice 
throughout France, there is a window devoted to no 
other purpose than to receive the funds of the people ; 
and the funds so deposited, draw a rate of interest, that 
would equal about two per cent in American money, 
and the depositors can draw their funds at any time 
they deem proper, principal and interest. 

The French government also incorporates municipal 
banks under government control, where the people can 
always borrow money at a rate of interest, which 
would equal about three per cent per annum in Ameri- 
can money, and the funds are always on hand to ac- 
commodate the people, if they have the security for the 
loan. Why not have a similar system in America? 

There is nothing to hinder a county or a city in 
America (having the necessary population and proper- 
ty valuation) from organizing a banking department 
and getting its circulating notes from the government 
the same as do the national banks at the present time ; 
and at a rate of interest (which the government calls 
a tax) of one-fourth of one per cent semi-annually, or 
one-half of one per cent per annum, on the notes in 
circulation. 

Suppose Coffeyville with her 18,000 population and 
property valuation assessed at $11,000,000 should con- 
clude to organize a banking department for the city, 
which can be done as easily as organizing a water or 
electric light department, or the department of trans- 
portation. 

On a proper application from the City of Coffey- 
ville, the government of the United States would char- 
ter a banking department for the city, and issue cir- 
culating notes to the amount of say, ten per cent of the 
assessed valuation of the city, and authorize the bank- 
ing department of the city to loan these funds at three 
per cent per annum in such amounts as the business of 



106 PROGRESSIVE GOVERNMENT 

the people may require. Under such a system, if a per- 
son needs money and has the security for the loan, he 
will borrow the needed funds from the banking depart- 
ment of the city, and use it so long as it would net him 
a margin above three per cent per annum; and when 
it does not do so, he will return it to the banking depart- 
ment of the city, and the people will have an elastic 
currency, conforming to the natural law of supply and 
demand, and the municipality would get the benefit of 
the difference in interest between the one-half of one 
per cent paid to the government for the use of the 
money, and the three per cent interest on the loans 
made to the people. 

The City of Coffeyville like all other cities is in 
debt. It owes about $700,000, on which it pays an 
annual interest of six per cent, or in round numbers 
$42,000 per annum. These bonds, I presume will run 
on an average thirty years or more, for municipalities 
are not paying their indebtedness, but going deeper in 
debt, which policy will probably continue for many 
years. In fact, as long as the city is growing and ex- 
tending its limits into undeveloped territory. 

Let us take the bonded indebtedness of the City of 
Coffeyville, $700,000, and compute the interest upon 
this for the period of thirty years at six per cent per 
annum, and we have a total in principal and interest 
that the city must pay of $1,960,000. This sum in- 
cludes the principal of the bonds $700,000 and $1,260,- 
000 in interest. 

Now suppose the city would organize a banking de- 
partment and carry these bonds herself, instead of al- 
lowing the banking and trust companies to do so. By 
organizing the banking department, the city would get 
the $700,000 from the government at one-half of one 
per cent per annum, which would equal $3,500 a year ; 
and in thirty years, the amount paid by the city to the 
government for the use of its money, would amount to 



BY GEORGE CAMPBELL 107 

$105,000, while the interest upon the bonds at six per 
cent for the thirty years, would be $1,260,000 ; and if 
we now deduct the $105,000 paid to the government for 
the use of the money, from the $1,260,000 of interest 
paid on the bonds, we would have a balance of $1,165,- 
000 standing to the credit of the banking department 
of the city. Now if we should take the amount of the 
bonds $700,000 from the $1,165,000 we have a net bal- 
ance of $465,000 to the credit of the city after wiping 
out all indebtedness. Hence, municipal banking in 
thirty years would pay the entire bonds of the city, 
principal and interest, and would leave a net balance 
in the banking department of the city of nearly half 
a million dollars — saved to the city, by the difference in 
the rate of interest. Would not such a system be much 
better for the people than to allow these vast sums of 
money to go to increase the millions in the bank mer- 
ger, controlled by Morgan, Rockefeller and others? 
Think about it, and discuss it with your neighbors. 

Under a proper law, the government of the United 
States could furnish this money to the municipal banks 
as easily as it now furnishes to the national banks, and 
the municipal banks could use the same sort of currency 
that the national banks now use, or could use United 
States treasury notes, and all of this currency, whether 
national bank or treasury notes, would be government 
obligations, just the same as is the currency now fur- 
nished to the national banks, and which is proposed to 
be furnished to the bank, under the Aldrich plan. 

A municipal system of banking would even be more 
safe than the present banking system, or the plans pro- 
posed by the Aldrich monetary commission; and the 
money could not be cornered and business depressed, 
and the amount in circulation would be governed by 
the demand, and there would never be any more panics 
in the United States, and no bank mergers or failures ; 
and there would be no discrimination shown by the 
municipal banks between individual borrowers. Why 



108 PROGRESSIVE GOVERNMENT 

should not Congress enact a law," authorizing govern- 
ment banking through the postoffice and municipali- 
ties as herein outlined, and settle the currency question 
for all time? 

Under such a system of banking, the City of New- 
York (which is referred to as being unable to ever pay 
its debts) could establish a banking department with as 
many branches as would be necessary for the conven- 
ience of its people, and by the saving in interest alone 
on her vast indebtedness, would pay off all of her obli- 
gations in a few years and would be free of debt ; and 
other cities could do the same, and with municipal bank- 
ing for counties and cities, with such branches as the 
convenience of business demands, would be solved the 
currency question for all time in the interests of the 
people, and would put the business of the country be- 
yond the influence and control of the banks. 

The banks are now forcing the money issue upon 
the people, and will attempt, it is alleged, to coerce 
Congress in the passage of a bill organizing the seven 
thousand national banks into one great merger, oper- 
ated under a single head, as proposed by the Aldrich 
plan. 

The means to be employed by the banks, to force 
Congress as appears from a circular is to gradually 
draw in the bank loans, cease to discount commercial 
paper, create a money stringency, force property upon 
the market in payment of debts, and thereby depress 
prices and cause stagnation in business, resulting in 
the closing down of factories and the throwing of large 
numbers of people out of employment; and it is sug- 
gested that the carrying into effect of these measures, 
will bring a sufficient pressure to bear upon Congress 
to force it to enact a law giving force and effect to the 
Aldrich plan of banking; and the press will probably 
be subsidized to publish articles in the interest of the 
banks but none in the interest of the people, as was the 



BY GEORGE CAMPBELL 109 

case in the fights for the rechartering of the United 
State bank. 

These measures proposed, to force the hands of 
Congress are certainly heroic, and indicate that the 
contest will be fierce; but if so, it will be the sooner 
over, and the fight can be made at this time with less 
inconvenience and loss to the people than perhaps at 
any future period ; and it is to be hoped that the peo- 
ple and Congress will not be frightened or coerced into 
supporting a bank merger of any description ; but will 
accept the gage of battle thrown down by the banks, 
and defeat their propositions, and establish govern- 
ment banking, (in lieu of the national banking system) 
either direct or through municipal banks, which will 
give to the people the profits on the issue of circulat- 
ing notes, and the benefits of an elastic currency that 
cannot be cornered, and will do away with panics ; and 
forever divorce the business of the people from the 
influence and control of the banks, and will thereby 
insure prosperity to the people for all time. Let the 
people unite upon this one issue of government bank- 
ing, and stay with it, and success is assured. 

As fast as progressive government clubs are formed, 
a report should be made to some person designated 
hereafter until such time as a general conference is 
called and a national organization affected with head- 
quarters at which to report. 



110 PROGRESSIVE GOVERNMENT 



APPENDIX 



THE GAS QUESTION. 

This appendix contains the circulars issued in the 
campaign on the gas question in the City of Coffeyville 
in the spring of 1911, and no changes have been made 
in either except that the circulars are numbered as 
appears in the brackets at the top of the page. 

The law is quoted in the circulars, provides that the 
city can fix maximum rates for gas, and after trying in 
vain to get the city officers to fix a maximum rate, I 
concluded in 1909, to be a candidate for City Attorney 
on this issue and ascertain the sentiment of the people, 
and the platform on which I made my campaign is 
contained in Circular No. 1, and I ran 973 ahead of my 
ticket and was elected. 

I prepared an ordinance after my election, fixing 
maximum rates for gas and put it up to the Mayor and 
Council to pass, but it was voted down by a large ma- 
jority. The city then adopted the commission form of 
government, which made it possible for the citizens 
to frame an ordinance and attach it to a petition signed 
by not less than twenty-five per cent of the voters of 
the city and present it to the commissioners and the 
commissioners must either pass the ordinance without 
amendment or submit it to a vote of the people within 
twenty days. 

After the commission form of government had been 
adopted, I prepared an ordinance fixing maximum rates 
for gas. The rate for factories being 3 cents per 
thousand cubic feet and the rate for domestic purposes 
I2V2 cents per thousand cubic feet, and there was at- 



BY GEORGE CAMPBELL 1 1 1 

tached to this ordinance a petition signed by fifty-six 
per cent of the voters of the city and the commissioners 
adopted the ordinance as the sentiment of the people 
seemd so overwhelmingly in favor of it that it seemed 
useless to submit it to a vote. 

The gas company then filed its petition in the United 
States District Court, for an injunction to enjoin the 
city from putting in effect the rates established by the 
ordinance, and a temporary injunction was granted 
pending the final hearing of the complaint, and while 
the case was still pending in the United States Court, 
the spring election of 1911 came. 

The City Attorney was not an elective officer under 
the commission form of government, so I went to sev- 
eral of the candidates for Mayor and asked them to 
make the gas question an issue, and some of them 
promised to do so if no other candidates did. 

I waited for them to announce themselves upon 
this question until a few days before the primary when 
I again called upon them and asked if they would 
make the gas question an issue, but they refused to do 
so, as they did not want to antagonize the gas company. 
I then told them that the people should have an op- 
portunity to express themselves upon this question, 
and I had concluded if no other candidate would run 
upon this issue, that I would be a candidate solely for 
the purpose of submitting this question to the people, 
and I thereupon entered the field with this object in 
view. 

I made no canvass, and told the people not to vote 
for me on personal grounds, but vote solely upon the 
gas question, and that a vote for me was to continue 
the fight that seemed nearly won for the city, and that 
a vote for the other candidates was an instruction to 
me not to continue the fight and agree on the part of 
the city to make the temporary injunction permanent 
as per my instruction from the city commissioners, and 
thus end the contest. 



112 PROGRESSIVE GOVERNMENT 

The campaign that resulted was the most active 
ever known in the history of the city and the gas com- 
pany made concessions to the factories, as I am in- 
formed by the management, and the factories made 
the fight for the gas company and were successful, and 
the gas company was endorsed by a large majority, 
and in accordance with the vote of the people, I made 
the temporary injunction against the city permanent 
and the ordinance adopted by the city fixing maximum 
rates for gas, was thereby annulled. 

In this connection, it is but fair to state, that the 
City of Coffeyville has a large floating vote consisting 
of men temporarily employed in the factories and in 
addition to this, about one-fifth of the vote of the city 
is colored. The next day after the election, a merchant 
of the First Ward of this city called at my office and 
paid his bill of $15.00, and I noticed the payment con- 
sisted of fifteen crisp new one dollar bills, silver cer- 
tificates. I asked him. where he got these bills as they 
were uncommon and he told me he took them in 
in the course of business the day before (the day of 
the primary) and the night following. I asked him 
how many of these bills he had taken in and he said 
he had not countetd them, but he would say one hun- 
dred and perhaps more. I asked him if he had ever 
received one dollar bills before in large numbers and 
he said this was the first time in the course of business 
he had received one dollar bills. That silver dollars 
was the kind of money that he generally received in 
the course of business and $1.00 bills were seldomly re- 
ceived, and that he did no call to mind that he had ever 
before received crisp, new one dollar bills. I asked 
him from whom he received these one dollar bills and 
he said principally from colored people, but that he 
received some of them from the whites. 

I then investigated and found that the other mer- 
chants had received these bills in large numbers and 
one druggist had taken in in the course of business, 



BY GEORGE CAMPBELL 113 

during the day of the primary and the night following 
one hundred and eleven of these bills. 

I had thirteen of my one dollar bills remaining of 
the fifteen that were paid me by the merchant and I 
sent these to Governor Stubbs of Topeka and asked 
that the matter be investigated, and that the person or 
corporation guilty of buying votes be ascertained and 
prosecuted to the full extent of the law. 

The governor ordered the investigation and I have 
received word from the attorney general and the detec- 
tive agency of the state, that the investigation will be 
made in the near future, but in the meantime, I sent 
the numbers of many of these bills to the Treasurer of 
the United States and asked him to ascertain to whom 
these bills were sent. He did so and informed me they 
were sent to the gas interests in another city about 
twenty-five miles distant in Oklahoma, and the ques- 
tion suggests itself, how did they find their way to Cof- 
feyville on the day of this primary in such large quan- 
tities? Of course, we have our opinion and many facts 
to sustain it, but will wait for the investigation on the 
part of the state. 

This case is given somewhat in detail that the peo- 
ple may understand what they will have to contend 
against in trying to regulate and control public service 
corporations, and it will be observed that not one state- 
ment in my circulars have been denied, as the facts are 
in my possession to sustain every allegation, and yet, 
the people voted by a large majority to sustain the gas 
company to the detriment of themselves, their families 
and the city in general. 



1 14 PROGRESSIVE GOVERNMENT 

(Circular No. 1, 1909.) 

TO THE VOTERS OF COFFEYVILLE 



I am a candidate for the office of City Attorney, on 
the Independent ticket, and as it will be impossible for 
me to see all the voters, I address you this circular, 
which embodies my platform. 

/ am in favor of a greater and more prosperous Cof- 
fey ville, and realize, if our city is to grow and become 
great, conditions must be changed, and made more 
favorable to the laboring people, for after all is said, it 
is the "bucket brigade" that makes a prosperous city, 
and we should not lose sight of this fact in our desires 
to advance the city's interests. 

At Independence, gas for stoves is furnished at the 
flat rate of $1.00 a month per stove; and lights for 
5 cents each per month ; and Independence has a tele- 
phone service at $1.00 per month for residence phones, 
and $2.00 for business phones per month. 

At Dearing, the smelter rate for stoves is $1.00 per 
month, and 10 cents per light; and at Mound Valley, 
from $1.00 to $1.50 per stove, and 10 cents for the first 
light, and 5 cents for each additional light ; and if you 
will compare these rates with the rates that prevail in 
Coffeyville, it is apparent that there is something 
wrong, and there is a lack of a "Square Deal," some- 
where. 

The law is ample to protect the people of Coffey- 
ville against excessive gas and telephone rates, and I 
have called the attention of two Mayors and several 
councilmen of our city to the law, but could get no 
action. 



SECTION 784 OF THE GENERAL STATUTES OF 

1905 READS' AS FOLLOWS: 
The Mayor and Council shall have the power by 
Ordinance : 
"To prescribe and fix maximum rates and charges, 



BY GEORGE CAMPBELL 115 

and regulate the collection of the same, for all water, 
electric light, heat, potver, gas, telephone service or 
any other commodity or service furnished to such city 
or to any of the inhabitants thereof by any person or 
corporation now authorized by such city by virtue of a 
franchise ordinance, or that may hereafter be author- 
ized by virtue of a franchise ordinance, to furnish 
water, electric light, heat, potver, gas or telephone ser- 
vice, or any other commodity or service, to such city 
or its inhabitants. The rates and charges so prescribed 
sliall at all times be reasonable and just; and if any 
city shall fix unreasonable and unjust rates and 
charges, the same may, at the instance of any producer 
or consumer, be reviewed and determined by the dis- 
trict court of the county in which such city is situated" 

This law has been in full force and effect for several 
years, and while Independence acted under this law, 
and fixed maximum rates for her public service cor- 
porations, nothing has been done on this line in the 
City of Coffeyville. WHY NOT? 

If I am elected to the office of City Attorney, I 
shall frame an ordinance fixing just and reasonable 
maximum rates on gas and telephone service, and put 
it up to the Mayor and Council to pass it ; and if I am 
elected upon this issue, it will show the sentiment of 
the people, and I have no doubt but that the Mayor 
and Council will pass the ordinance. 

I was told if I made this question as issue in my 
campaign, I would be defeated, but I have disregarded 
the warning, and have made it an issue just the same. 
''The die is cast," and it is now up to the people to 
decide whether they want such an ordinance or not. 

A VOTE FOR ME IS A VOTE FOR THIS ORDINANCE. 

In this connection I want to say a word to the 
women; they are interested in the home and its wel- 
fare and should have more power to protect it. They 
should have equal privileges with men, including the 
right to vote on all questions. Why not? They have 
to live under the same government, pay their taxes 
and are amenable to the law equally with men. I hope 
they will all vote at this election, and if Judge Snelling 
does not want their votes (and I suppose he does not) 
then I wish they would pass to the Independent ticket, 



116 PROGRESSIVE GOVERNMENT 

and put a cross in the square to the right of my name, 
and I shall certainly appreciate their kindness and they 
will not regret their vote in the future years. 

Now, I want to say a word to the Republicans who 
are in the habit of voting a straight ticket. If you put 
a cross in the circle at the head of your ticket, you 
have done all the necessary marking in voting a 
straight ticket. Now, if you will pass to the Independ- 
ent ticket, and put a cross in the square to the right 
of my name, then your ticket will be counted for the 
entire Republican ticket except City Attorney, and 
your ballot will be for me for that office. Don't you 
think you had better vote in this manner? Judge 
Snelling almost distanced me in the primary race, but 
I want to come under the wire first this time, and 
"score" and want you to help me. Will you do it? 

Respectfully submitted, 

GEORGE CAMPBELL. 



15V GEORGE CAMPBELL 



117 



(Circular No. 2, 1911.) 




UNCLE SAM: Well, I reckon the progressive 
movement has burst the shell of the two old parties, 
and it does not look as though it could be put back. 
It is a strong fledgling and will no doubt cause corpor- 
ate greed a vast amount of trouble. 

The question involved, is whether the natural man, 
or special interests are to rule this nation, and the 
forces are now gathering for a final contest, that will 
shake the continent. 



118 PROGRESSIVE GOVERNMENT 

Kansas will, no doubt, be the storm center in this 
movement, as it has been in all other movements, for 
the betterment of conditions. 

Do you know, that the first time in history, that 
corporate wealth was ever defeated by the people, was 
in Kansas; and the case is known as the OSAGE 
CEDED LAND CASE, and involved the title to 800,000 
acres of land, lying mostly in Labette and Neosho 
counties. 

The M., K. & T. Railway Company, and the L., L. 
& G. Railway Company had procured from the gov- 
ernment of the United States patents to these lands, 
and they wanted the settlers to pay the full value of 
these lands, and also for the improvements placed 
thereon by the settlers; and after many attempts to 
compromise without success, the settlers organized 
"THE SETTLERS' PROTECTIVE ASSOCIATION," 
and prepared to fight the case in the courts, and after 
many reverses, they succeeded in having the Supreme 
Court of the United States set aside these patents, and 
the settlers recovered the lands worth about seven mil- 
lion dollars. 

The question that is now being fought out by Cof- 
feyville against the gas company, does not alone con- 
cern the people of Coffeyville, but there is a principle 
involved that effects, to a greater or less extent, near- 
ly every city in the state, and they are looking to Cof- 
feyville; and many are asking the question "has the 
people of Coffeyville the spirit of those hardy pioneers 
of the early seventies," that successfully contended 
against the railway companies for their homes? 

The legal contest now being waged between the 
City of Coffeyville and the gas company, is being taken 
up by the other cities and letters have been received 
from New York, Chicago, Kansas City and other 
points, inquiring about the questions involved in this 
suit; and it now looks as if the gas question was fast 
becoming a state, and in a minor degree, a national 
question; as gas is an article of fuel, of nearly equal 
importance to that of coal, and the people have a 
vested interest in these natural properties, and state 
and national aid should be invoked in their conserva- 
tion to the people. 

Kansas sounded the alarm in 1860, that aroused 



BY GEORGE CAMPBELL 119 

the nation and struck the shackles from nearly four 
million slaves and destiny is again knocking at her door 
and demanding a solution of the fuel question, especial- 
ly as it applies to gas, and Kansas bids fair to become 
the storm center of the new progressive movement, 
that is born to CONSERVE OUR NATURAL RE- 
SOURCES and to bring industrial freedom to the peo- 
ple, and limit the power of aggregated wealth. 

The question is now up to the Coffeyville voter to 
say whether he favors the people or the Gas Company. 

MAKE YOUR PREFERENCE KNOWN ON 
ELECTION DAY. 



THE GAS QUESTION 



To the People of Coffeyville: 

About two years ago, I was a candidate for the 
office of City Attorney, and the main issue was the GAS 
question, and I compared the prices of gas in Coffey- 
ville with those of Independence, furnished by the same 
company, and showed that in Coffeyville the people 
were paying nearly four times the price, that was be- 
ing paid at Independence, and I stated if elected, I 
would prepare an ordinance correcting these abuses, 
and put it up to the Mayor and Council to pass. I was 
elected, and prepared the ordinance under section 1273 
of the Compiled Laws of 1909, which reads as follows : 

"A CITY OF THE FIRST-CLASS HAS THE POWER 

"To prescribe and fix maximum rates and charges 
and regulate the collection of the same for all 
water, electric light, heat, power, gas, telephone 
service or any other commodity or service fur- 
nished to such city, or to any of the inhabitants 
thereof, by any person or corporation now author- 
ized by such city by virtue of a franchise ordi- 



120 PROGRESSIVE GOVERNMENT 

nance or laws of this state, or that may hereafter 
be authorized by virtue of a franchise ordinance 
or laws of this state, to furnish water, electric 
light, heat, power or telephone service, or any 
other commodity or service to such city or to its 
inhabitants. The rates and charges so prescribed 
shall at all times be reasonable and just and if any 
city shall fix unreasonable or unjust rates and 
charges, the same may, at the instance of any pro- 
ducer or consumer be reviewed and determined by 
the District Court of the county in which such 
city is situated." 

This law seemed sufficient to enable the city to 
correct these abuses, and I framed the ordinance with 
this object in view, but it was voted down by the Mayor 
and Council. 

The commission form of government was later 
adopted by the city, and I again framed an ordinance 
covering these discriminations, and this ordinance was 
forced through the commission by petition, but before 
it went into effect, the city was enjoined by the United 
States District Court and the injunction was issued on 
the ground, that the ordinance was "confiscatory of the 
company's property" in not allowing the company a 
sufficient revenue to pay operating expenses and ten 
per cent upon the capital invested, which sums the law 
says a reasonable rate must provide for. 

You will note in this connection, that the law quoted 
above says, that the rates fixed by the ordinance shall 
be "reasonable," and that if any city shall fix unreason- 
able and unjust rates, the same may at the instance of 
any producer or consumer, be reviewed and determined 
by the District Court of the county in which such city 
is situated. 

This law clearly contemplates, that the appeal shall 
be taken from the city to the District Court of the 
county, but the gas company ignored this provision of 
the state law, and filed its suit in the United States Dis- 
trict Court, and Judge Pollock ruled that he had juris- 



BY GEORGE CAMPBELL 121 

diction to hear this case, and that the question pre- 
sented was whether or not the price of gas fixed by the 
city ordinance was, confiscatory, in not providing a suf- 
ficient revenue to meet the fixed charges above men- 
tioned. 

The gas company holds a franchise from the city 
granted several years ago, which gives the company the 
right to install meters (at the expense of the company) 
and in accordance with the terms of this franchise, I 
provided in the city ordinance for flat rates and meter 
rates, and the city was very liberal with the company 
in the fixing of rates, and gave it a larger price for gas, 
than in equity the company was entitled to receive. 

The meter rate fixed by the ordinance, is 12V&C per 
thousand cubic feet for gas for domestic purposes, and 
3c per thousand cubic feet for gas for factory purposes, 
and the gas company was at the time and is now fur- 
nishing gas to the citzens of Independence at Sc per 
thousand cubic feet for domestic purposes, and as low 
as 2V2C per thousand cubic feet for factory purposes, 
and if the persons who are using the gas for domestic 
purposes in Independence, pay their bills before the 
tenth of the succeeding month, they get a discount of 
3c per thousand cubic feet, making the actual rate on 
gas for domestic purposes in the city of Independence 
5c per thousand cubic feet, while in Coffeyville, the peo- 
ple pay 20c per thousand cubic feet to the same com- 
pany. 

The ordinance framed by the City of Coffeyville, 
allows 12V2C per thousand cubic feet, meter measure, 
for all gas used for doemtsic purposes, and yet, the 
company's officers swear this rate is confiscatory, and 
will not net a sufficient revenue to pay operating ex- 
penses and ten per cent on the capital invested, which 
two items the court says, a reasonable rate must pro- 
vide for. 

We have a Kansas statute, paragraph 5162 of the 



122 PROGRESSIVE GOVERNMENT 

Compiled laws of 1909, that is known as the anti-trust 
law of Kansas, which reads as follows : 

"Any person, firm or corporation, foreign or 
domestic, doing business in the State of Kansas, 
and engaged in the production, manufacture or 
distribution of any commodity in general use, that 
shall intentionally, for the purpose of destroying 
competition, discriminate between different sec- 
tions, communities or cities of this state, by sell- 
ing such commodity at a lower rate in one section, 
community or city or any portion thereof, than is 
charged for such commodity in another section, 
community or city, after equalizing the distance 
from the point of production, manufacture or dis- 
tribution and freight rates therefrom, shall be 
deemed guilty of unfair discrimination." 

The penalty for the violation of this law is set 
forth in section 5,165 of the Compiled Laws of 1909, 
and reads : 

"Any person, firm or corporation, violating the 
provisions of this act, upon conviction thereof, 
shall forfeit to the State of Kansas, the sum of not 
less than two hundred dollars for each and every 
violation of this act ; said sum to be recovered by 
a suit in the name of the State of Kansas, in any 
court of competent jurisdiction by the attorney 
general/' 

In accordance with the provisions of said law, I filed 
a complaint with the attorney general against the gas 
company alleging discrimination against the City of 
Coffeyville in the sale of gas, and showed there was no 
good reason why Coffeyville should not receive gas as 
cheaply as Independence, as it is in the gas field and 
equally accessible. 

The attorney general investigated the matter, and 
the gas company raised the price of gas at Independ- 
ence to conform to the price in Coffeyville, but was im- 
mediately enjoined from putting this rate into effect, 
and as a result, Independence is paying the same price 
for gas that it paid heretofore, 5c per thousand cubic 



BY GEORGE CAMPBELL 123 

feet for domestic purposes, and whether the company 
had itself enjoined to evade the provisions of the anti- 
trust law of Kansas, and enable it to continue its dis- 
crimination against the City of Coffeyville, the reader 
can draw his own conclusion. 

The gas company states in its petition filed in the 
United States District Court, that it was the intention 
of the company at that time to charge the City of Cof- 
feyville 25c per thousand cubic feet for gas for domes- 
tic purposes, and that this rate was to go into effect 
immediately, and stated, the company would charge an 
additional sum of 2%c per thousand cubic feet if the 
gas bills were not paid on or before the tenth of the 
succeeding month; and that this rate for gas was a 
reasonable rate for the City of Coffeyville to pay, and 
would not more than create a sufficient sum to defray 
the operating expenses of the plant including repairs, 
and ten per cent on the capital invested. 

The records in this case show, that the people of 
Coffeyville are paying the gas company for gas for 
domestic purposes, the sum of $95,032.52 per year, and 
for mill purposes the sum of $75,792.53 per year, but 
the revenues derived from the sale of gas for all other 
purposes while it must be large, the city has not been 
able to get the exact amount, but on the two items, 
domestic and (mill purposes, we pay an aggregate sum 
of $170,825.05 per annum, and yet, the company says, 
that this sum is not sufficient to pay the operating ex- 
penses including repairs, and ten per cent upon the 
capital invested, and wants to raise the rate to 25c 
per thousand cubic feet. 

The records in this case show that the total ex- 
penses in the operation of the Coffeyville gas plant in- 
cluding repairs, extensions, salaries, taxes, etc., is 
$38,400 per annum; and, adding to this the ten per 
cent on the capital invested, which at the outside 
figures would not be more than $25,000, and these two 



124 PROGRESSIVE GOVERNMENT 

sums, aggregated make a total sum of $63,400 per an- 
num, and this sum according to the company's records 
should only be collected from the people of Coffeyville 
on all the gas consumed, to meet the fixed charges, thai 
the court says a reasonable rate must provide for ; and 
in allowing ten per cent on the capital invested I have 
estimated the actual investment at $250,000, while the 
sworn statement of the officers of the company show 
the total plant is worth but $133,000 as listed for 
taxation. 

Now, if we take the $63,400 from the $170,825.05 
we have a surplus, after paying all these fixed cJiarges, 
and ten per cent upon the capital invested of 
$107,825.05 per year; yet the company contends that 
this sum is insufficient and wants to raise the price to 
to 25c per thousand cubic feet ; and in this connection 
it says that the city ordinance is confiscatory of their 
property rights, when as a matter of fact, the rates 
fixed by the Coffeyville ordinance will provide a fund 
of more than $120,000 per annum, and the reasonable 
rate need only provide $63,400. 

The injunction proceedings, brought against the 
City of Coffeyville to annul the Coffeyville ordinance, 
was filed something like six months ago, and of course, 
it seems to those that are not aware of the questions 
involved, that this case ought to have been disposed of 
some time ago, but we must bear in mind that there is 
more than a million dollars involved, when we take 
into consideration the life of the franchise; and that 
such a case can not be successfully tried without a large 
amount of preparation, in the examination of the law, 
and the taking of testimony ; and it is not an easy mat- 
ter to always procure the testimony needed in a case of 
this magnitude, but good progress has been made in 
the preparation of the case, and a large amount of 
record and other testimony has been taken, and the 
case can be disposed of in the near future ; and the city 



BY GEORGE CAMPBELL 125 

ought and I think will win, as both the law and equity 
is with the city; as the company, in its franchise 
agrees to furnish the gas at a reasonable rate, not to 
exceed the limit placed in the franchise. 

Rumors have been set afloat that this case has cost 
the city a large amount of money, but I want to say in 
reply, that the entire expenses of the legal department 
of the city under my administration has been only 
about $160 for the year, and from this fund has been 
paid all the expenses incurred in this case, in procuring 
the transcripts of records, taking testimony, and all 
other expenses of my department, including all other 
cases; and when we take into consideration that the 
gas rate has remained 20c per thousand cubic feet dur- 
ing the pendency of this action instead of 25c per 
thousand cubic feet, the rate that was to have been 
charged by the company, the suit has been a good thing 
for the people of Coffeyville, and has saved them at 
least $25,000 in the price of their gas. 

I have been to a great extent handicapped in the 
preparation and the conduct of this litigation, as it is 
claimed I am not representing the city, but am trying 
to force upon the people a litigation that they are op- 
posed to, when as a matter of fact, I am merely defend- 
ing the rights of the city. 

Some of the leading members of the Chamber of 
Commerce have made these representations to me and 
also some of the leading members of the Merchants' 
Organization, and the Mayor and some of the members 
of the City Commission of Coffeyville, seem to take the 
same view, and say, they believe a majority of the peo- 
ple are against me, and I was directed by the Mayor to 
consent on the part of the City for the court to make the 
injuetion against the City permanent and thus, annul 
the City Ordinance. 

I told the Mayor I could not do this and stated if 
the proposition was submitted to the people, and they 



126 PROGRESSIVE GOVERNMENT 

directed me by their vote to do so, I would cheerfully 
comply with their wishes, as I considered this a matter 
resting wholly with the people of Coffeyville, and not 
with the officers ; and that they had a right to be heard 
before any such action was taken. 

Sometime after this, I talked to some leading at- 
torneys in Fort Scott, and went over the records of this 
case with them, and they are considered among the 
ablest attorneys of the state, and have a large practice 
in the United States courts, and these attorneys stated 
they would assist me in this case, and in the further 
proceedings necessary in recovering from the gas com- 
pany, what is due the city, for the use of the streets ; 
and that if the city would allow them a reasonable com- 
mission on what they collected, they would indemnify 
the city against all costs; and I laid this proposition 
before the Mayor and Commisison, and the Mayor 
stated the gas company did not owe the city anything, 
and the same idea was advanced by some of the Com- 
missioners present, and the Mayor stated that the Com- 
missioners had unanimously agreed that I should go to 
Kansas City before the court and consent that this in- 
junction he made permanent against the City of Cof- 
fey vile, and it was stated that a resolution had been 
prepared to officially instruct me to do so, and that I 
was under the control of the City Commisison and that 
this was their order and they wanted it complied with. 

There is no doubt that under the commission form 
of government, the City Attorney is subject to the or- 
ders of the Board of Commissioners, as the law says in 
so many words, "That the City Attorney shall be under 
the immediate control of the City Commission," but 
while I realize the force of the Commission's position, 
I felt that this was a matter that ought to be placed 
before the people, and that I was not justified in tak- 
ing these steps unless ordered to do so by a vote of the 
people. 

The position, taken by the Mayor and Commission- 



BY GEORGE CAMPBELL 127 

ers in this case, while it has placed me at great disad- 
vantage with the court, there are grounds for their 
belief that a majority of the people are against me. 
It will be remembered that thirteen hundred petitioners 
stated in substance that they were satisfied with the 
treatment from the gas company, and wanted the ordi- 
nance annulled; a similar request was made, so I am 
informed, by the Chamber of Commerce, and by the 
Merchants' organization of the city, and when the mat- 
ter is presented to the court that thirteen hundred peti- 
tioners, the Chamber of Commerce, the Merchants' 
organization and the City Commision are all against 
me, and they represent to the court that I am trying 
to force upon the people what they do not want, it is 
easy to comprehend the effect this will have upon the 
court; and if the City Commissioners would say in 
their resolution, they wanted the injunction made per- 
manent, and that the power to represent the city in this 
action, had been taken from me by the Board of Com- 
misisoners, would not the court under these circum- 
stances deny me a hearing and make the injunction 
permanent in accordance with the sentiment of the 
resolution passed by the City Commission? 

I do not like to be guilty of insubordination, but I 
feel in this instance, that I ought to be instructed by a 
vote of the people, if this injunction is to be made 
permanent; and under no condition would I consent 
for the injunction to be made permanent, unless the 
proposition had first been submitted to the people and 
they had so instructed me by their votes. 

I have waited now until the fourth of March, to see 
if a candidate for Mayor would announce himself in a 
manner to make the gas question an issue, but none 
have so announced themselves up to this time ; and in 
order to get the sentiment of the people upon this prop- 
osition, I shall be a candidate for Mayor at the ap- 
proaching election, tuith this question as my platform, 



128 PROGRESSIVE GOVERNMENT 

and those that are in favor of sustaining the city in this 
action, and in recovering from the gas company what 
justly belongs to the city under the franchise, and who 
believe that the gas company should be controlled and 
that a supply of gas under the proper pressure should 
be provided for the people, the same as in Kansas City, 
should vote for me; and those that believe the injunc- 
tion should be made permanent and the city should lie 
down, and not defend or protect its rights should vote 
against me, and in case a majority are against me I 
will obey the will of the people and appear in the 
United States District Court and consent that the in- 
junction be made permanent. 

I have done a large amount of work in this case, 
and while I do not like to abandon it, yet, if the people 
say by their ballot, that it is their will that this injunc- 
tion be made permanent, and all my labor be lost, I 
shall cheerfully yield to their instructions, but if the 
people endorse my action by their ballot, then in the 
words of General Grant "I shall fight it out on this line 
if it takes all summer," and I have no doubt as to the 
result, if the people are backing my action. 

To counteract some of the unkind things that have 
been mentioned I desire to say, that if elected to the 
position of Mayor, I shall endeavor to do my whole 
duty to the city, and shall give to the people, an ener- 
getic, clean, conservative administration, and shall see 
that the expenses of the city are kept within its reve- 
nue, and shall endeavor to so manage its affairs that 
there will be a surplus instead of a deficit in the de- 
partments of the city government, and shall endeavor 
to make corporations pay for the use of the streets, as 
Kansas City is now doing, having recently instituted 
a suit to recover $280,000 for the use of the streets. 

I do not intend by this to involve the city in expen- 
sive litigation in settling these questions, but I know 
of able firms of attorneys, who will take these cases 



BY GEORGE CAMPBELL 1 29 

on a reasonable percentage of what they recover for 
the city, and will indemnify the city against all costs 
and expenses. 

If elected, I shall also ascertain from reliable sources 
the cost of installing a gas plant to be owned by the 
city, and after the facts are all marshalled, I shall then 
call public meetings at which this and other questions 
will be discussed, and if in the judgment of the people, 
after knowing all the facts, it is thought to be to the 
best interest of the city that a plant be installed, so the 
city can offer inducements to factories to locate here, 
the proposition will then be submitted to the people for 
their action, and from the information now at hand, it 
seems highly probable, that a gas plant can be estab- 
lished without one cent of cost to the taxpayers of the 
city, and that the entire expense, can be paid from the 
profits upon the gas. 

The city is now making some experiments with ref- 
erence to gas development, and has a few gas wells, 
some of which are coupled with the waterworks plant 
of the city, and in a few days, the electric light plant 
will also be operated with city gas. 

If the city had created a debt for the costs of drill- 
ing the wells, piping the gas, paying the royalties, pay- 
ing interest upon the money, etc., after paying all these 
expenses and providing for the payment of the entire 
debt in four years with interest upon the same, and all 
running expenses, it brings the price of gas that the 
city has now developed at a little less than four-tenths 
of a cent for each one thousand cubic feet, and the city 
is offered eight thousand acres of approved gas land 
with many strong producing wells near by, and can 
lease this land at a nominal price, and there are many 
other tracts within approved gas territory, and of easy 
access to the city, that can be had at very reasonable 
royalties on the gas wells that we use. 



{Continued on page 133) 




In the early seventies, the people on the OSAGE 
CEDED LANDS were engaged in a giant struggle 
with the M., K & T. and L., L. & G. Railway Companies, 
for the posesssion of their homes. 

These companies had procured patents from the 
government, for every alternate section of land on a 
strip, twenty miles wide, and extending ten miles on 
either side of the railroads. 

These companies not only wanted the settlers to pay 
the full value of land, but in addition thereto, wanted 
them to pay for the improvements placed thereon by 
the settlers ; and the settlers had made these improve- 







ments in good faith, thinking they were on government 
land, that they could enter for their homes. 

All attempts at a compromise failed, and as a last 
resort, the people organized the "SETTLER'S PRO- 
TECTIVE ASSOCIATION" to contest the rights of 
the railway companies in the courts. 

At first, we were beaten on three occasions, but we 
fought on ; and after more than five years, we succeed- 
ed in beating these companies, in the United States 
supreme court, and the court declared that these patents 
were illegally issued to the railway companies, and set 
them aside; and the settlers, by reason of their bull 



dog tenacity in remaining in the fight, secured for 
themselves this vast tract of land, embracing over 
800,000 acres, and worth about SEVEN MILLION 
DOLLARS. 

During the time this fight was being waged, of 
course, there were a large number of the settlers, whose 
fight we were making, became impatient, the same as 
in this gas question, and wanted the case finally de- 
cided, or the fight given up, as they said it was injuring 
the country, but as a matter of fact it was a good ad- 
vertisement. 

In 1874, to quiet these people, who kept up their 
constant fire from the rear, which was worse than the 
one in front, I wrote up a detailed account of the case, 
and had it published in pamphlet form, for distribu- 
tion, that the people might know all the facts ; and the 
pamphlet found its way to Chicago, and was published 
by the Chicago Express, and there was comment made 
upon it in various other papers, and in my statement 
of the case, I told the people, if they would so conduct 
themselves as not to prejudice the court, we would win. 

About this time there was an Editorial Association 
that convened in Chicago, and among the questions 
talked over, was the OSAGE CEDED LAND CASE, 
and one of the members who attended that meeting, 
and who was connected with a Denver paper, returned 
by the way of Mound Valley, Kansas, where I lived 
and he visited me over night and I found him an 
agreeable, genial fellow. 

At that time, although a mere boy, I was quite well 
posted as to what the government was doing, in its 
donations of bonds and lands to the railway companies, 
and this question was discussed freely with my visitor, 
and the next morning he took quite an interest in my 
breaking team and plow, as at that time I was en- 
gaged in breaking prairie, and in about ten days after 
his visit, I received his paper, with a cut, of which the 
foregoing is a facsimile. 

This cut represented me as plowing under COR- 
PORATE RULE and the different classes of monopoly, 
and plowing up the PEOPLE'S RULE, and other 
things necessary for the welfare of the people; and 
while it was intended as a "burlesque" I rather liked 
the symbol, and concluded to reproduce it here, as there 
are many things in Coffeyville, figuratively speaking, 
that should be PLOWED UNDER, and many things 
that ought to be PLOWED UP, for the betterment of 
the city, and that the people may understand the af- 
fairs of the city in detail, and remedy existing evils. 



BY GEORGR CAMPBELL 133 

( Continued from page 129) 

A party was to see me a few days ago from the 
Oklahoma fields, and said his company would sell the 
city all the gas it desired at 5c per thousand cubic feet ; 
and if the city so wished, his company would put in a 
city plant with mains extending to all parts of the city 
and fix a price of 15c per thousand cubic feet on all gas 
for domestic purposes, and 5c per thousand cubic feet 
on all gas for factory purposes, and that if the city 
would turn over to his company all the patrons of the 
Coffeyville Gas & Fuel company, his company would 
receive the price above stated upon the gas for four 
years, and at the expiration of the four years his com- 
pany would turn over to the City of Coffeyville the city 
plant, free of all indebtedness; and his company would 
then continue to sell the city all the gas it desired at 5c 
per thousand cubic feet and deliver the same at the 
city limits. 

I have written several cities that own their gas 
plants, for information, and their answers are all on 
the same line, that city ownership gives the city large 
returns on the investment, and at the same time lessens 
the price of gas to the consumer. 

For lack of space I cannot give these letters, but 
will give an extract from the letter of F. M. Abbott, 
mayor of the City of Chanute, which is as follows : 

"A franchise was granted twelve or fourteen years 
ago to the Prairie Oil & Gas Company, who put in a 
part of our present plant. Our city bought this plant 
of them for $62,500. We paid for it out of the profits 
on the gas in three and one-half years. We have since 
extended to twice its former size. We have it paid 
for and don't owe a cent on it. Our profits on gas per 
month ranges from $1,000 to $3,000. No gas is used 
in town for any purpose, but what is purchased from 
the city, except one glass factory, and in case of emer- 
gency it buys its gas of the city. Respectfully yours, 

"P. M. ABBOTT, Mayor." 



134 PROGRESSIVE GOVERNMENT 

Mr. Abbott states elsewhere in his letter that the 
price charged for gas for domestic purposes is 15 cents 
for each thousand cubic feet, and for factory purposes, 
not to exceed 10 cents per thousand cubic feet, and that 
the city has a splendid service much better than that 
renderd by private corporations. 

Since writing the above Mr. Cahill tells me that an 
officer of the gas company inforced him that the com- 
pany would not furnish gas for the Coffeyville factories 
after the present year; that the gas was playing out. 

This reminds me of what an employee of the gas 
company told me nearly two years ago. He said the 
officers of the company were talking among themselves 
that the gas was then piped to Kansas City, St. Joseph, 
Topeka and other points, and that the company could 
sell all its gas for 25 cents per thousand cubic feet, and 
that it would not furnish Coffeyville gas at a less rate. 

One of the officers stated that 25 cents was all right 
for the people of Coffeyville for domestic purposes, but 
that the factories could not pay that price and live. It 
was suggested by one of the company that the factories 
could go out of business, or use some other kind of fuel ; 
that there was plenty of oil that could be had for that 
purpose. The question then came up about the fran- 
chise, that was granted by the City of Coffeyville to the 
gas company and the question was asked if the company 
was not compelled under the franchise to furnish cheap 
gas for factories at Coffeyville. One of them said, as 
a matter of law that might be the case, but there was 
always a way around, and the company could make a 
contract with the factories and embody in the contract 
a clause giving the company the right to turn off the gas 
from the factories, by giving them thirty or sixty days 
notice. 

One of them stated, that he had a plan that he be- 
lieved would work the best, and that was for the com- 
pany to put down no more wells in or near the group 



BY GEORGE CAMPHKU, 135 

that supplied Coffey ville, and not clean out any of the 
old wells, and gradually let them fill in and exhause 
themselves, and then say to the factories of Coffeyville 
that the gas "is played out," and that they must use 
some other fuel, and give them notice that their gas 
would have to be turned off, and that it was impossible 
for the company to furnish it. 

It would seem as though this policy is being pur- 
eued by the gas company, for it is said the company 
quit putting down wells in or near the group that sup- 
plies Coffeyville, and has not cleaned out the old wells, 
and is allowing them to gradually exhaust themselves, 
and are circulating the report that "the gas is playing 
out," when as a matter of fact they are piping out of 
this field 354,000,000 cubic feet every day. 

The gas company in its franchise from the city 
agrees to furnish gas to the city for all purposes at 
"reasonable rates" and the court said a reasonable 
rate was not what the company could get for its gas 
but, such a rate as would net a sufficient amount of 
money to pay the operating expenses of the plant in- 
cluding repairs and ten per cent upon the capital in- 
vested. 

The court also added the statement, in referring to 
the Coffeyville ordinance, as follows : "Take the three 
cents per thousand cubic feet for factory gas, and 
Yiy^cents per thousand cubic feet for domestic gas, 
put these two together, and if they net a sufficient sum 
to cover these fixed charges, the rate is reasonable." 

We have already shown that the rate fixed by the 
Coffeyville ordinance (three cents per thousand for 
factory gas, and 12V2 cents per thousand for domestic 
gas) will net the sum of $120,000 a year, while a rea- 
sonable rate need only to net the sum of $63,400 to 
meet all the expenses as defined by the court, and hence 
the Coffeyville ordinance if put into effect, will net the 
company over $50,000 after defraying all these fixed 



136 PROGRESSIVE GOVERNMENT 

charges and yet, the company says this rate is confis- 
catory and wants the injunction against the ordinance 
made permanent. 

From the statement of the facts, as above set forth, 
it is evident, that the city has its case virtually won, 
but if the people desire to abandon the contest, they 
will have an opportunity to express themselves at the 
coming election, and I hope that the voters will express 
themselves in a manner so emphatic, that it will leave 
no doubt as to where they stand upon this question. 
Respectfully submitted, 

GEORGE CAMPBELL. 




JOHN BULL : Zounds ! I hope the Coff eyville peo- 
ple will not continue the fight against the gas company, 
for I want America to create all the millionairs pos- 
sible. 

The sworn value of the Coffeyville gas plant, as 
listed for taxation, is $133,000, and the annual income, 
above operating expenses, is in round numbers $200,- 
000 a year, and this vast profit will soon create mil- 
lionaires, and I can then create titles, and exchange 
for these Coffeyville millions. This is a business propo- 
sition with me, and I will create all the titles necessary 
to cause a transfer of the American millions to my 
kingdom. 



138 PROGRESSIVE GOVERNMENT 

MONEY RULES IN AMERICA, and when I get 
control of the money, I shall then bear rule. My dress 
will be changed to conform to the changed conditions 
of my kingdom, and my lion will be remodeled, and 
natural history will contain a new and valuable acqui- 
sition. 

Why should the people of Coffey ville object to pay- 
ing these high prices for gas, when they know by so 
doing they can create millionaires? It must certainly 
be some satisfaction to these people who pay the bills, 
to see the management of these corporate interests, 
sport their diamonds and ride in their touring cars, 
while their own families go afoot. But walking is 
generally good in Coffeyville, and there should be no 
complaint on these lines. 



[CIRCULAR NO. 3.] 

ARE INTERESTED IN CAMPAIGN 



Factories of Coffeyville Take a Stand — Sounds 
Public Warning — Future of the City at Stake 
and Voters are Cautioned About the Apprach- 
ing Election. 



The undersigned are vitally interested in the present 
campaign for the selection of mayor and commission- 
ers of Coffeyville. We are especially opposed to the 
candidacy of those who have adopted as an important 
plank in their platform, the determination to force 
the fight against the gas company for the reduction of 
their rates. 

We believe the interest we have in this matter, the 
attention we have given it, the investigations we have 
made, enable us to reach conclusions as to the situation 



BY GEORGE CAMPBELL L39 

that should be entitled to at least as much considera- 
tion as that of any party not greatly interested in the 
matter and who is using the subject as a stepping stone 
to political preferment and honor. The undersigned 
represent interests employing approximately 1,800 
men supporting 7,200 of our population. The interests 
we represent are such as are peculiarly dependent upon 
an abundant and cheap fuel supply. Without this fuel 
supply, many of these factories must close, these men 
must be depried of their employment and become com- 
petitors in other labor markets with other men.. We 
submit that a man with a good job is better able to pay 
for 20 cent gas than a man with no job to pay for 5 
cent gas. We know, to a positive fact, that, regardless 
of the irresponsible statements of any candidate, no gas 
field with any promise of furnishing this city an ade- 
quate supply of gas exists ivhere there is the slightest 
possibility of securing the necessary money to pipe it to 
Coffeyville in quantities that woidd supply her fac- 
tories. 

Statements to the contrary, not backed by the in- 
formation which makes the proof of the facts stated 
positive and certain, are the tricks in trade of the 
demagogues and wily politicians, and should be con- 
demned. If this unlimited supply of gas, anxious 
to come to us, can be located, we will welcome it with 
open arms, but we want facts, not dreams. The indus- 
tries who have signed this article have gone into the 
field and tried to get territory for a supply of gas to 
run their factories, but have failed to find a permanent 
supply. We have more at stake than the success or 
failure of a single politician, and the business men and 
laborers of Coffeyville have to choose, in our opinion, 
between the loss of a pay roll of $125,000 per month on 
the one hand, and the possible small saving of fuel bills 
on the other. 

We are firmly convinced that no possible hope exists 
at this time or will ever exist again in the future, for 



140 PROGRESSIVE GOVERNMENT 

an adequate supply of gas for manufacturing purposes 
on the scale on which it is conducted in Coffeyville, ex- 
cept through the channels which now practically con- 
trol the gas supply of the mid-continent field. From 
this source, we are convinced we must draw our supply 
or not at all. 

The ultimate failure of the supply, whether it be 
one or ten years, not at Coffeyville but everywhere, is 
admitted by all those who have had experience in this 
matter. As this occurs manufacturers will be driven 
to other and more expensive fuel, but it is of the utmost 
importance that those of Coffeyville shall not be driven 
to this high priced fuel before others are compelled to 
use it and thus be driven out of business by their com- 
petitors. We repeat, that the only hope we have been 
able to find lies in the source from which we are now 
drawing supplies. If the supply exists as stated by 
some of the candidates, if those who control it are 
axious to come to Coffeyville, if there are the tremend- 
ous profits in the business claimed, we see no reason 
why they should not come at the present time and 
under the present conditions, as a division of the profits 
claimed would be a splendid income. If the present 
agitation continues we may rest assured that we will 
get no additional supply, which has been promised us, 
from those who are now supplying Coffeyville and oth- 
er points, because other cities are urging an increase, 
of such supply at prices far in advance, for manufac- 
turing purposes, of those charged here. 

If the laboring man is willing to sacrifice his job 
for a dream he should support these men. If his home, 
the education of his children, the food and clothing for 
his family are more important to him than the few 
cents involved in this gas question he should stand for 
a candidate who is willing to admit the facts and stop 
an agitation that threatens the prosperity of us all. 
The assertions made by some of the candidates when 
we consider the conditions at Iola, Gas City, Cherry- 



BY GEORGE CAMPBELL 141 

vale and many other gas towns in Kansas, are nothing 
short of amazing. The drilling of new wells in old 
territory has seldom resulted in developing wells of 
any importance. The cleaning of old wells, while help- 
ing matters a little, has resulted in nothing of import- 
ance from a manufacturing standpoint. No resources 
or expense has been spared at Iola, but the results have 
been practically valueless. If it were not for the mil- 
lions spent in piping gas from distant fields, many 
more of Iola's industries would be standing idle and 
her people unemployed or seeking employment from 
the factories of Coffeyville in competition with our 
people. These are stubborn facts not dreams or argu- 
ments made for the purpose of securing honors of the 
people. Those who shut their eyes to these established 
facts are unsafe, impracticable or demagogues. 

We are fighting for the permanency of our institu- 
tions and the employment of our employes, and upon 
this foundation the prosperity of this city depends. 
We believe there is everything to loose and nothing to 
gain in a continued fight against the present source of 
our supply of fuel, and we respectfully ask the voters 
to say that it shall end. 

It is a fact that Indepndence, Gas City, Iola, Cher- 
ryvale, Chanute, Fredonia, Neodesha and Mound Val- 
ley are now paying more for factory gas than is Cof- 
feyville. 

We believe if the voters will carefully consider the 
facts as they exist that they will not vote for a candi- 
date who is opposed to the factory interests and 
through them the community at large. 

Coffeyville Window Glass Co. 

Ball Bros. Glass Mfg. Co. 

Coffeyville Shale Brick Co. 

North Star Mfg. Co. 

Coffeyville Stonware Co. 

Kansas Oil Refining Co. 



142 PROGRESSIVE GOVERNMENT 

Kidcloo Milling Co. 
Standard Vitrified Brick Co. 
Coffeyville Foundry & Machine Co. 
Ludowici-Celadon Co. 
Coffeyville Vitrified Brick & Tile Co. 
Ozark Smelting & Mining Co. 
National Refining Co. 
Sunflower Glass Co. 
Robinson Packer & Machine Co. 
Andersen Manufacturing Co. 
Cudahy Refining Co. 
Rea-Patterson Milling Co. 
National Sash & Door Co. 



(Circular No. 4, 1911.) 
To the People of Coffeyville: 

I did not intend to have anything more to say with 
reference to the gas question. I set the facts out in 
my circular in a manner that I thought all could under- 
stand and I was willing to abide by the results. 

I was told, however, that the gas company, by its 
attorney and certain city officials, were preparing a 
circular that would be placed before the general public 
at so late a date that it could not be answered, and that 
this circular would be signed by certain factories with- 
in this city; that the gas company would compel the 
factories to sign this circular under the threats of 
turning off their gas. 

In the Herald last night appears this circular, in 
which I am branded as a demagogue and an enemy to 
the city, and it seems as though this circular should be 
answered. 

The circular purports to be signed by nineteen Cof- 



BY GEORGE CAMPBELL 143 

feyville industries, but as a matter of fact, from a 
legal standpoint, it is not signed by any one. 

A corporation can only act through its officers and 
no officer's name is attached to either of these signa- 
tures. Any one can write the name of the Coffeyville 
Window Glass company, but that does not mean any- 
thing, unless the name of an officer is attached thereto. 
If the signature had been The Coffeyville Window 

Glass Company, by its President , or Secretary, 

or Business Manager, or some one else authorized to 
sign the name of said company, then there would have 
been some force to the signature, but the names are 
withheld from all the signatures that are attached to 
said circular. 

I want to call the attention of the voter to the fact 
that even in this circular not even one statement con- 
tained in my circular is contradicted, and the reason is, 
the gas company knew that I had the proofs in my 
office to establish every statement contained in my cir- 
cular. And I ask the voters to read it again and see 
if it does not contain a clear statement of facts and 
that I am trying to sustain our city's industries instead 
of attempting to destroy, as alleged in the gas com- 
pany circular. All that I am asking is that the gas 
company abide by its contract with the people of Cof- 
feyville, as embodied in the franchise, and certainly 
there is no demagoguery about this. 

The gas company through its franchise agreed to 
furnish gas at reasonable rates for all purposes to our 
city and its consumers during the life of the franchise, 
and it cannot turn off the gas from our industries. 
And it also agreed to pay a certain per cent into the 
city for the use of the streets and public squares. 
Section 6 of the franchise granted by the City of Cof- 
feyville to the Peoples Gas Company reads as follows : 

'That in consideration of the granting of this 
franchise the City of Coffeyville hereby reserves the 



144 PROGRESSIVE GOVERNMENT 

rentals for its streets, alleys, avenues and public 
grounds provided for in chapter 82 session laws of 
1897 of the State of Kansas, which said rentals shall 
be ascertained and collected as provided by said chap- 
ter 82 of said session laws and the ordinances of said 
city hereinafter passed." 

Then turning to chapter 82 of the session laws of 
1897 we find the following provision: 

"No renewal or original grant, lease or contract 
shall be made with any such private corporation by 
any city of this state without reserving rents and pro- 
viding for the collection of the annual rental value for 
the use of its streets, alleys, roadways or squares, 
which shall be done and ascertained by allowing first, 
legitimate expense of conducting such corporations' 
plant, including all necessary repairs; and second, by 
allowing interest at the rate of not more than six per 
cent per annum on the capital invested as ascertained 
under the provisions of the preceding section, unless 
the council and mayor are petitioned to allow a greater 
rate than six per cent by at least three-fifths of the 
bona fide taxpayers of such city based on the last as- 
sessment rolls, which expense and per cent on the 
capital invested being deducted from the gross earn- 
ings of said corporation, such municipality shall 
through its proper officers collect the net balance of 
said earnings as rentals for the use of the streets and 
alleys, roadways and squares of such city, and as the 
city's income on the franchise leased by said munici- 
pality to any such corporation, and as such rentals, 
said net proceeds shall be paid into the treasury of such 
city on the first day of January and July of each year, 
after the making of such grant, lease or contract for 
the operation of such plant." 

There has never been one cent paid by said gas 
company for the use of the streets, alley, roadways and 
public squares of the city, and there is now due the 
city under this franchise upwards of a half million 
dollars, and now the question arises, "Will the voters 
of Coffeyville release the gas company from the pay- 
ment of this honest indebtedness?" 

The gas company gave a bond that it would abide 



BY GEORGE CAMPBELL 145 

the conditions of its contract and said bond was signed 
by the gas company through its president and attested 
by the secretary of said corporation, and said bond 
was signed by the following individuals: E. S. Rea, 
F. 0. Weis, Daniel Wells, J. F. Savage, F. D. Benson 
J. T. Wettack and W. H. Read. So there is no question 
about the bond being good, and it looks as though there 
should be no objection to settling these matters in court 
as it was designed by our forefathers and has come 
down to us through the ages, that the court is the place 
to settle our difficulties when we cannot agree among 
ourselves. The threats that are intimated in the cir- 
cular should not deter any one from doing his duty and 
a corporation should receive no more consideration 
than an individual, and the question remains whether 
the voters of Coffeyville have the nerve to go to the 
polls upon election day and discharge their duty with- 
out fear or favor of any citizen or any corporation. 

We need the spirit that was manifested by the Com- 
mander of the old "Minnesota at Hampton Roads in 
1862. At that time the old rebel ironclad, known as 
the "Merrimac," sailed into Hampton Roads and at- 
tacked our navy and had sunk some of our vessels and 
flashed the threat to the commander of the old "Min- 
nesota" to haul down his flying colors or he would sink 
his Yankee boat — and the old commander, though he 
was at a disadantage, the American spirit was aroused 
in him, and he flashed back the message, "You hydra- 
headed monster and all your rebel clan, I will never 
strike my colors; you may sink me and be damn'd." 
This is true American manhood, and I hope every 
voter in Coffeyville will go to the polls on election day 
and do his duty regardless of any threats. Be honest 
with yourselves and the interests of the city and let re- 
sults take care of themselves. 

The circular says that these companies have en- 
deavored to find gas for manufacturing purposes but 
have been unable to do so in sufficient amounts to an- 



146 PROGRESSIVE GOVERNMENT 

swer their purposes, and that if there is as much gas 
as I have stated that they would like to be informed. 
But at the same time they do not want me to inform 
them, for the reason they are trying to prevent my 
election. I stated in my circular that if elected I should 
call a public meeting and lay these facts before the peo- 
ple and if they decided to develop gas, or purchase 
from another company, and thought this would be to 
the best interest of the city, that I would then submit 
the proposition to the voters by calling an election and 
let the people decide it. There is no doubt that there is 
plenty of gas within easy access of the city, and even 
if we should decide to procure gas from the Hogshooter 
district in Oklahoma, what we pay the gas company 
in one year for gas would build a pipe line to the 
Hogshooter district and would leave a surplus of 
$25,000 — and this is no dream, but is a positive fact 
and susceptible of proof. 

In conclusion I desire to say that the city is in bet- 
ter position to make this fight now than it will ever be 
again, and if the people sustain the gas company the 
future historian who shall write the history of Cof- 
feyville will date its decline from the surrender of the 
city to the gas company, and Iola, Humboldt and sev- 
eral other cities serve us as an example of what hap- 
pens where the people of the city do not contend for 
their rights but surrender to the gas company. 

So far as the office of mayor is concerned, I care 
nothing about it, and if elected I would willingly re- 
sign to some one else that would successfully carry for- 
ward this contest. I have done the best I could in the 
past several months, and nearly single handed, to pro- 
tect the interests of the city, and now it is up to the 
voters whether they will sustain the arm that has 
fought their battles or whether they will strike it down 
and embrace their enemies. 

Respectfully submitted, 

GEORGE CAMPBELL. 



BY GBORGE CAMPBICLL 147 

(Circular No. 5, 1911.) 

VOTERS ATTENTION 



The Manufacturers' Circular did not mention 
George Campbell. Why does he believe he was refer- 
red to as a Demagogue? 

The circular was issued by the Manage?^ and 
Officers of the concerns represented.. Those who doubt 
this, call any of the offices by phone. The Gas Com- 
pany has net forced nor requested these concerns to 
sign the circular, but have, in every way and at all 
times done everything possible to assist us, and have 
kept us informed candidly of the gas situation. 

If Mr. Campbell is a loyal citizen of Coffeyville, he 
will not demand that he be elected mayor before he is 
willing to furnish the information he claims to have, 
which no other person has been able to obtain, and 
which is of such vital importance to Coffeyville and her 
citizens, the location of an adequate gas supply and 
the means by which he will obtain it. 

We honor those who are public spirited, not those 
whose benefits to the community are only given in ex- 
change for honors previously demanded and granted. 

S. C. HOOVER, 
President Manufacturers' Association. 
L. E. ROBINSON, 

Secretary. 



[P. S. Since the election a well was drilled on a 
part of one tract of land of 2,300 acres offered to the 
city and the well discharges 16,000,000 cubic feet of gas 
a day, showing that there is an abundance of gas out- 
side of the Coffeyville Gas Company's holdings, and a 
careful inquiry fails to show that the management of 
the same Coffeyville fathers made any investigation 
outside of what the gas company told them.] 



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